From fine wine to classic cars... alternative investments are still popular and can offer attractive returns. Here are 10 of the best

While owning a racehorse, classic cars or a famous painting is bound to set the pulse racing more than watching the FTSE-100, there is a world of difference between collecting and investing. And while some hobbies can offer a reasonable financial gain, the two rarely mix well. The golden rule is to make sure you buy for financial rather than emotional reasons. Here are 10 inviting ideas...

1 Classic cars
A mature market with regular, high-quality auctions means prices are also fairly stable and relatively easy to predict. Of course, cars have to be well maintained to keep their value. There is always a market for Italian GTs from the 1960s, as witnessed last year when Radio 2 DJ Chris Evans spent a reported £5m on a Ferrari 250 GT California Spyder once owned by James Coburn. If nothing else, it confirms that Italian good looks and celebrity provenance is always a winning combination.

2 Wine
The right wine from the right chateau in the right vintage bought en primeur (before it's bottled) can be a licence to print money. There are various expert wine investment schemes to help you make the selection. Although you're unlikely to drink the stuff (and there's something slightly sad about that), the wine must be kept in a good cellar. According to the Guinness Book of Records, the most expensive bottle of wine ever sold was a Château Lafite 1787 once owned by Thomas Jefferson. It was sold at auction for $160,000 (now £100,000) in 1985.

3 Watches
Storage is simple and as watches generally benefit from being worn, they are a practical investment. There is also a good network of retailers and auctioneers, so buying and selling is straightforward. But fashion can make the desirability, price and value unpredictable. Patek Philippe dominates the list of the most expensive watches sold at auction. A recent surge in interest in luxury watches has seen prices for all vintage watches rise. Prices for vintage Rolex watches have jumped by as much as 20 per cent a year, with particular models tripling in one year. Be careful if you are buying over the internet as there are plenty of fakes, and make sure every detail of the watch is original.

4 Art
With the contemporary art bubble bursting earlier this year, now may be a good time to buy. The Mei Moses Fine Art Index, which measures the performance of art as an investment, suggests prices are down by over 35 per cent this year. Works by already established artists are a safe but expensive bet. As the market slows, assets such as art get more difficult to sell and it gets harder to see short-term returns. Picking hot young artists can be a dangerous business. 

5 Vinyl
Collecting vinyl records is unlikely to be a path to great wealth. Unless you happen to stumble onto something extremely rare and valuable in the hands of someone who doesn't know how precious it is, or you are prepared to give up lots of time and effort at record fairs, this is strictly hobby territory. Individual items, such as some northern soul singles, the album signed by John Lennon a few hours before he was shot and original pressings of classic jazz albums in mint condition, will always be worth money.

6 Metals
Precious metals, notably gold, can be a sensible option for anyone looking to protect wealth. As gold hits record highs-at the time of writing it's just sneaked over the $1,000 (£615) an ounce mark-now might not be a great time to buy. Experts suggest that no more than five per cent of your total wealth should go into metals. And although they can be volatile in the short term, prices tend to be relatively stable over the longer term.

7 Stamps
The market for collectible stamps is relatively stable. And if some consider it a nerdy hobby, typical annual growth rates of 10 per cent suggest it's anything but dull. Stamps group Stanley Gibbons claims there are almost 50 million collectors worldwide, so there is an active market for buying and selling stamps and a steady stream of collections up for auction. Stanley Gibbons likes to highlight the case of Bill Gross, who turned a $2.5m (£1.5m) collection into $9.1m (£5.6m) profit.

8 Memorabilia
Autographs or autographed items by famous musicians and sports personalities make for one of the more unusual and harder-to-predict investment categories. Online auction site eBay was recently flooded with Michael Jackson memorabilia as collectors sought to cash in on the King of Pop's death. Scarcity and provenance are key factors in determining value. So, too, are the status and popularity of the celebrity.

9 Racehorses
As any racing fan will tell you, judging the performance of a horse can be tricky. Picking the next Sea The Stars and investing in one is even harder. Buying all or a share of a thoroughbred can be a great way of making huge returns, but is more often a way to spend spare cash. If you can't afford to lose the money, this is not the place to invest it.

10 antiques/furniture
While the market for most antiques remains relatively stable, a flick through any interior design magazine will show the huge demand for mid-20th century furniture. Again, provenance plays a part in the value. At an auction earlier this year, Greek shipping tycoon Dinos Martinos paid over £25m for an Eileen Gray Dragon Chair previously owned by Yves St Laurent. Classic pieces, such as furniture made by Charles and Ray Eames, will always sell for a decent price. And if you can spot copies and fakes from the real thing, now may be a good time to buy.