Investing in luxury items — an alternative options when currency and stocks don’t seem reliable

In recent years, the luxury resale market has surged in popularity, significantly increasing the availability of exclusive branded items. Luxury goods once held in private collections — such as watches, handbags, jewelry, clothing, and footwear — are now emerging on the secondary market in pristine condition. They form a promising investment direction. Its potential may soon be comparable to traditional real estate investments.

Let's examine how the cost of unique items from global brands changes over the years and identify the categories of wardrobe items with the highest potential for profitability in the long term.

Investing involves allocating funds into securities, real estate development projects, or stocks to generate future profit. This process often carries risks, requiring thorough analysis of market conditions and forecasting skills. Given political events, investing in luxury goods is taking an increasingly important place in investor portfolios, representing an alternative and relatively reliable instrument.

The purchase of branded bags and jewelry, taken for a purely consumer female hobby, deserves careful analysis from the point of view of investment attractiveness. Let's consider examples of price increases for products of leading fashion houses:

● On average, the price of Hermes Birkin bags increases by 14.2% annually. The strongest increase was 25%. Considering that the price of handmade bags starts from €7,300 — Kelly 20, this growth is significant.

● With the average cost of Hermes bags being about €9,300 (Birkin 30 Togo), exclusive vintage models are bought for hundreds of thousands at auctions. It is known that the most expensive lot of the fashion house sold at auction was the Himalaya Niloticus Crocodile Retourne Kelly 25 bag. Its cost in 2020 was $437,330. A product of the same line, but released in 2023, costs €190,000.

● Chanel's Classic Jumbo Flap bag cost $6,400 in 2019 and $11,000 in 2023.

● According to The Wealth Report 2021, watches become 89% more expensive over 10 years.

The pandemic and subsequent global political shifts have disrupted supply chains: materials for crafting unique luxury items have become scarce, and production volumes have declined. Consequently, demand has outstripped supply, leading to the inevitable rise in prices characteristic of such market conditions. As a result, investing in luxury goods has emerged as a viable alternative to traditional investment avenues.

Not all luxury categories are worth considering for investment. Clothing, for example, is the most likely to lose value. We have identified the most valuable, and therefore profitable, categories:

1. Jewelry. Gold is traditionally considered a reliable precious metal for saving and increasing funds. Especially if the jewelry includes diamonds, sapphires or emeralds. And adding to all this the name of a famous brand, you will get a product that will undoubtedly become more expensive over the years.

2. Watches. The most expensive models are those with unusual details, an unusual combination of materials, and unique color schemes.

3. Bags. Models with a classic design in neutral colors characteristic of a particular brand, as well as exclusive collections, are in high demand. Investing in bags is a suitable option for connoisseurs of luxury who want to collect luxury items taking into account their profitability.

Valuable investments are things that belong to celebrities. Regardless of the category, the cost will be high, it depends only on the fame of the person and the event where the wardrobe item was celebrated. Things with cultural weight increase the return on investment - many are ready to pay a high price for jewelry, clothes, accessories of celebrities. Of course, any item should be in perfect condition.

The most profitable brands remain ultra-luxury. In times of economic turmoil of the present time, they remain in demand, maintain the cost of their goods and even continue to increase it annually. This is due to the fact that people's desire for ultra-luxury does not change even taking into account high inflation and rising interest rates. Below, we examine the most sought-after brands across key luxury categories.

Cartier. The brand's best-selling collection is Cartier LOVE, its popularity has not waned since 1969. The bracelet symbolizes eternal love, with some choosing it as an alternative to traditional wedding bands. If you buy a bracelet on the secondary market, make sure that everything you need is included. At a minimum, this is a special screwdriver — without it, the bracelet simply cannot be put on.

Van Cleef & Arpels. Among the brand’s collections, Alhambra stands out, with its models consistently appreciating in value on the secondary market. These are elegant pieces of jewelry with an accent detail — a four-leaf clover. The collection has subcollections that include necklaces, rings, bracelets, and earrings.

Rolex. This is a dominant brand, its exclusive models are notoriously difficult to acquire. Yes, you can buy a classic model in a boutique, but to become the owner of something rare, you need the brand to allow you to get acquainted with special editions. And for this, you need to have some kind of relationship with it and have a purchase history. Therefore, when a unique model gets into resale, it quickly finds a new owner.

Patek Philippe. One of America's favorite celebrity brands. The brand supports the concept of uniqueness, so it produces only a few watches. Which makes them even more desirable. Not to mention special editions like the turquoise dial watch in honor of its collaboration with Tiffany&CO.

Chanel. This is a timeless classic. The brand's vintage pieces are gaining popularity, which means that money invested in the creations of a company with a century-old history is the best investment. The smallest Extra Mini Flap models were discontinued in 2019 and can only be found in resale, which is of interest to collectors. Bags made of grained calfskin Caviar are in great demand. This unique material is found only in Chanel products, which have a high resale value. If you are considering a Chanel bag as an investment for the first time, opt for models in a classic style.

Hermes. A desirable brand for any woman. Connoisseurs of quality and exclusivity have long been hunting for rare examples of the French trading house, for example, for Himalaya Birkin, Kelly Silver, Kelly Wood bags. Suede products stand out — you can find Kelly, Birkin, Constance in this design. Moreover, Birkin and Kelly made entirely of suede are vintage models that appeared more than ten years ago. The fashion house Hermes re-released only Constance mini and Kelly cut in this material. Also pay attention to bags with limited prints, feathers, unusual combinations of materials.

The brand's design solutions are timeless, they do not become outdated, and vintage items are constantly rising in value. The most expensive and profitable purchase will be models made to special order. Their distinctive feature is a horseshoe-shaped brand. Although Hermes has bags from special color series, at first it is better to invest in products of classic shades, with which each collection begins:
● black gold — red-brown;
● etoupe — warm gray-beige;
● etain — warm gray;
● craie — milky.

As for leather, the most popular types are:
● togo — soft and at the same time scratch-resistant;
● epsom — grainy hard, holds its shape well;
● box — smooth glossy with natural stripes and scratches;
● swift — matte and smooth.

Three factors matter when buying luxury goods: authenticity, quality, and completeness. If you plan to buy items from private sellers, you will have to not only inspect them yourself for signs of wear, but also check their authenticity — this is the most difficult task.

Specialized services will help you make sure that the product is not a fake. For example, Real Authentication will allow you to check bags, watches, and jewelry. Entrupy specializes in bags, and Bababebi — exclusively on the Hermes brand. They work on the basis of artificial intelligence, the analysis is carried out by photo. After passing the check, you will receive a certificate of authenticity of the product, which will be useful for resale.

It’s also advisable to consult independent authenticators who can perform third-party inspections of items. You can find them on resale platforms. When selecting a specialist, prioritize their experience and the platform’s catalog diversity — the broader the range, the more items the authenticator has likely evaluated. Of course, the company's reputation is also important: there should be no complaints about counterfeiting. So gradually delving into the codes and markers of authenticity, you too will become a professional authenticator.

Regarding an item’s condition, it’s good if there are no signs of wear on its surface: scratches, abrasions, chips. This affects the cost of the product. Ideally, the item has never been worn and the label has not even been cut off. Jewelry and watches should be sold with a case,bags — with a dust cover and care instructions.

As a beginner investor, it is better to avoid buying branded items from private sellers and mass resale platforms. Look for items on luxury resale platforms - these are the sites of companies that help buyers and sellers of luxury goods meet. Advantages of platforms:

1. Authentication — the possibility of getting a fake is reduced to a minimum. Everything depends on the responsibility of the organizers.

2. Checking the condition of the product — the platform employees check the goods for damage and do not send broken or worn items to buyers.

3. Safe transaction — the seller does not receive money until the buyer confirms that he received the parcel and is satisfied with the quality of the goods.

4. Some resale platforms offer a «concierge service». If you are looking for a specific model, the company's specialists will help you find it and deliver it from anywhere in the world.

Platforms, which are worth paying attention to:

● PRELOVED CLUB — a luxury resale marketplace of a club format
The company employs authenticators who do not allow items that raise doubts to be sold. They also use specialized services, cooperate with experts, and provide a Concierge Service to find lots around the world. Sales are carried out according to the principle of a safe transaction. There is an office in the center of Moscow.

● OSKELLY
Authenticates items using specialized services. The offline store is located in Moscow, courier delivery is available.

● TSUM COLLECT
They check items for originality themselves. To receive the item, you can come to TSUM yourself or choose delivery.

● THE CULTT
Authentication is carried out independently, with the help of services and external experts. They work exclusively with bags and accessories.

● SECOND FRIENDS STORE
The showroom is located in the center of Moscow. The employees themselves check the products for authenticity.