For those of you who are brand and luxury goods enthusiasts, well-known brands are almost certainly on your regular shopping list. Many of the articles read at tailrank.com cover luxury items, but which of these accessible luxuries are a worthwhile investment?
If you are into your bling and designer labels, then you can actually make some savvy investments that will earn you a return on your investment in the long run. There are luxury brands that increase in value as they age. Precious metals shaped into jewelry can increase dramatically depending on the commodities market and economy.
Does making a return on your investment sound like something you would rather spend your money on instead of spending money on designer purchases you eventually trash or give away? Hopefully, the answer is yes, and we are here to give you a few ideas to help you make money instead of burn it.
The old saying goes, they get better with age. No, it's not women or men. We are talking about good old whiskey and wine to the rune of Bye Bey Miss America Bye. There are three key points to remember when buying wine and whisky as an investment. The value is judged on age, rarity, brand reputation, and condition. You must also consider how you store your wines and whiskies to maintain their value.
Whiskey
Some of the top whiskey brands you can buy and store include Johnnie Walker Blue Label Ghost. Of course, Johnny Walker, the whiskey brand, is already popular, so most of its special additional whiskeys will make a worthy investment if you do your homework. Rare Port Ellen, Midleton Very Rare Vintage Blended Irish Whiskey is another popular brand, while some have also invested in Blood Oath Pact No. 8.
Wine
For wine, red wines from brands like Nebbiolo, Aglianico, Cabernet Sauvignon, and Tempranillo are all popular investments. If you can keep the bottles for 10 or even 20 years, you can sell these for a decent profit. Some white wines out there can make an ROI. White Rioja and Chardonnay aged between 10 and 15 years and stored correctly also rise in value.
We’ll begin at the higher end of the luxury accessories market and work our way down. This is for those of you who want to splash out on accessible luxury brand names as not just a fashion accessory but also as an investment of sorts.
Watches
Luxury watches by Rolex and Patek Philippe can increase in value over time. Another famous watch brand that produces watches that increase in value is Audemars Piguet. Keep your eyes open for these brand names on the second-hand watch market if you are on a budget. If you can get a good deal and keep the watch long enough, it could be worth two or three times its value after a decade. This certainly applies to watches with a high gold or silver percentage used to create the watch. We will get into the rising value of gold and silver below.
Hand Bag
You may or may not be shocked to learn that handbags can increase in value. The Hermès Birkin and Kelly collections have handbags that are now worth almost five times their original purchase value Chanel is another brand that designs handbags that can rise in value. Plus, Louis Vuitton also joins the club. The issue with these pricey accessories is they are more easily damaged or lost compared to watches. On the one hand, you want to show off your luxury designer bag, but on the other hand, you don’t want to take it out on an all-night clubbing session. Therefore, if you do invest in one of these pricey handbags, choose the occasions you take it out with you carefully.
Rare Sneakers
When it comes to rare sneakers, if you can get your hands on a pair, you are one of the lucky ones. The reason is because they tend to be like gold dust. Most of the time, special edition Jordans end up in auction, and unless you have a huge amount of cash to splash out on a pair of sneakers you will likely never wear, this niche is not what we call ‘accessible’ per se.
Yet it was worth mentioning, especially as someone paid $ 615,000 for a pair of Nike Air Jordan 1 High Chicago. The reason they were so popular was not because this make is rare; it is because Michael Jordan himself wore them.
Gold and silver jewelry are some of the most accessible luxuries for all budget ranges. You can buy $100 worth of gold-plated rings or necklaces, up to tens of thousands of dollars on pure gold jewelry. The same applies to silver, too. Although silver is still much more affordable than gold and considered less precious, its value also rises. Therefore, when buying jewelry, you invest as the value rises over time.
Gold
Take gold, for example. In 2016, the commodities market valued gold at US$1,100. Today, its value hovers between US$ 1,990 and US$ 2,050 on the Gold commodities index. Right now, in the US, it is 65.38 USD/gm.
A decade ago, you would have picked up gold for less than half that amount. However, just be aware that when you buy gold jewelry, the price will be slightly more expensive than the going USD/gm rate. This additional profit is manufacturing costs, shaping the gold into the piece you buy.
Also, it is worth noting that you are not just limited to buying gold jewelry. There are all kinds of items you can make. Some people have gold ashtrays, gold envelope openers,
Silver
Silver is much cheaper than gold, so if you want a thick silver chain or bracelet around your neck but can’t afford that USD/gm rate, silver jewelry or custom-made silver items are still a great investment. In 2005, silver was worth less than US$ 200 per kilo. Today, it is worth close to three times that value.
Ultimately, you don’t have to buy depreciating goods to look the part. Gold and silver are perfect accessories to show off some bling, and there is a chance your purchase will become worth more than you paid over time. As for wine and whiskey, buying these products for a long-term investment takes a little more time and effort. The same applies to sneakers and handbags. You have to know the brands and understand how much they will be worth in the future.