From 200 €
The essence of luxury goods investments
Luxury good is a way to earn on whiskey, oldtimers and watches, experts know what models will grow and recommend you to be part in it.
This is a way to achieve wealth accumulation beyond traditional stocks and bonds. They provide a unique blend of pleasure and investment potential. Luxury goods products are typically considered alternative investments and function as passive investments.
- Fine art
Investing in fine art includes paintings and sculptures by both established and emerging artists. Economic and cultural trends influence the art market, affecting the value of different styles. Successful investment requires a long-term perspective.
- Vehicles
Luxury vehicles include vintage cars, collectible motorcycles, bikes, yachts, private jets, and helicopters. Classic cars from the 1960s are particularly valuable. Collectible motorcycles and bikes are also popular. Yachts, jets, and helicopters represent high-status assets with financial opportunities.
- Rare wines
Rare wines often increase in value over time, especially from notable vintages and wineries. Factors enhancing wine investment include vintage quality, winery reputation, and bottle scarcity. You should focus on wines with longevity and complexity. - High-end watches
Brands like Rolex and Patek Philippe dominate this segment. The value of these luxury watches is propelled by their rarity, the brand’s reputation, and the historical significance of specific models. Watches with unique features, such as notable provenance or involvement in significant historical events, are particularly sought after.  - Jewellery and fashion
Luxury jewelry from brands like Tiffany & Co. and Cartier is highly valued. Pieces with rare diamonds and precious metals tend to appreciate. The investment appeal of luxury jewelry is often tied to the rarity and quality of materials. As well as the brand’s craftsmanship and heritage.
Entry barriers
Getting started can be accessible, with some platforms allowing investments at various price points, accommodating both seasoned investors and newcomers. The holding period can be extensive, often requiring patience.
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Research available assets:
Understand the specifics of each category, such as their market trends, historical appreciation rates, and unique risks.
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Authentication processes:
 Learn how the platform ensures the authenticity and condition of the luxury items.
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Start small:
It is essential to acquaint yourself with the process and see first-hand how the platform manages transactions and investment tracking.
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Network:
Evaluate the platform’s partnerships within the luxury goods industry. Strong connections can provide access to better opportunities.
The advantages of investment in luxury goods
- Well-chosen items can significantly increase in value.
- Helps mitigate risk in an investment portfolio.
- Investing in luxury items often grants access to exclusive networks.
- Investment experience that offering both aesthetic enjoyment and financial returns.
- Tangible nature and good historical performance.
Risks
- Market
While luxury items can appreciate, they can also depreciate based on changing tastes, economic conditions, or oversupply in the market. - Liquidity
Some luxury assets, like fine art, may not be quickly liquidated, potentially leading to longer holding periods than anticipated. - Authentication
Ensuring authenticity is crucial, as the provenance and legitimacy of luxury goods directly affect their value and saleability.
Is it for you
Consider your budget, your willingness to wait for returns (as some luxury investments may take time to appreciate), and your interest in the items themselves beyond their financial value.
You can start investing in luxury goods with different budgets, but significant initial investments might be required for higher-end items.
Taking the next steps
Want to invest in luxury goods? Start by checking out the best platforms to see your options.
Which luxury items are a good investment?
Designer handbags, particularly iconic models from brands like Hermès and Chanel, are highly sought after and tend to appreciate in value over time. For instance, the Hermès Birkin bag has consistently outperformed the S&P 500 and gold in terms of annual returns.
Are luxury goods an investment?
- Designer handbags: Hermès Birkin bags have shown annual returns of 14.2%, outperforming traditional investments like the S&P 500​.
- Luxury watches: Brands like Rolex and Patek Philippe are excellent investments. For example, Rolex Submariners can retain up to 154% of their resale value, while Patek Philippe watches have seen auction prices soar​.
- Fine wine and rare whisky: Rare whisky has seen a significant rise over ten years, making it a lucrative investment​.
What is an example of luxury goods in economics?
An example of luxury goods in economics includes items such as designer handbags, luxury cars, high-end watches, and fine wines. These goods are characterized by high income elasticity of demand, meaning their demand increases more than proportionally as consumer incomes rise. For instance, when incomes go up, people tend to buy more luxury cars like those from Porsche or high-end watches from brands like Rolex and Patek Philippe​​. These goods not only symbolize status and prestige but also often have a significant impact on the economy through job creation and high-value trad
What are the top luxury assets?
Top luxury assets include designer handbags from brands like Hermès and Chanel, which often appreciate significantly in value. Luxury watches, such as those from Rolex and Patek Philippe, are also excellent investments due to their rarity and timeless appeal. Additionally, fine wine and rare whisky have shown substantial growth, with rare whisky increasing by 586% over the past decade according to the Knight Frank Luxury Investment Index ​.