Since the inception of trading and banking, people have constantly been looking for new ways to increase their wealth through investment. Whether it’s the FTSE, cryptocurrencies, or classic cars – if there’s money to be made investing in these products and stocks, you can guarantee someone’s already added it to their investment portfolio.
However, one type of investment which is still yet to really break into the mainstream media is luxury product investments. As we’ve seen over the past century, different types of products from some of the world’s most luxurious brands not only retain their value, but increase in value over time – from Birkin bags to a Rolex, there are hundreds of products which could turn out to be a fantastic investment in the long run. To help prospective investors make an informed choice when it comes to expanding their luxury investment portfolio, luxury experts from HushHush have compiled a list of their favourite investment products in 2021.
1. Hermès Birkin bag – with demand for these luxury bags at an all time high, the cost of getting your hands on one is continuing to rise, with many people already paying more than three times the RRP for one of Hermès’ legendary bags. If the current climate remains the same for Birkin bags, we estimate people could make around 12-20% more on their original
investment in the next 6-12 months.
2. Rolex watches – probably the most iconic watch manufacturer of all time, a Rolex can be a fantastic product to add to your investment portfolio. We recommend investing in a vintage Rolex, as they have a lower price threshold, and therefore are more accessible and give you more chance to make profit on your investment in the future – this may go without saying, but the rarer the watch the better the investment. It’s also worth noting that almost all luxury watch brands have the potential to be a worthwhile investment, as long as the selected watch is desirable and in good condition. We estimate that people could make between 40-65% on their original investment in 12-24 months.
3. Modern art – art has long been one of the staples of luxury product investment, with one of the largest reselling communities in the world. However, while most of this trading focuses on vintage and antique art, we’ve begun to see a trend in people paying over-the-odds for modern and contemporary pieces, created by widely unknown artists. Keeping an eye out for new and upcoming artists in the modern art space can be a great way to find your next investment piece. We estimate people could make anywhere between 200-250% on their investment in 12-18 months if they find an artist before they garner mainstream attention.
4. Cartier & Tiffany jewellery – jewellery investments have always been popular, and while it isn’t a new concept, it’s still a great profit avenue for prospective investors. Similar to watches, the potential profit on specific brands like Cartier and Tiffany is always higher with vintage and unique pieces, particularly if a twin piece has been famously worn by a celebrity.
We estimate that people could make around 20-35% for standard pieces of jewellery, and upwards of 110% within 12 months if a piece has notoriety or a famous connection.
5. Classic sports or super cars – classic car prices are at an all-time-high, and this rise doesn’t look like it’s going to slow down anytime soon. The last 10-15 years have seen the biggest change in demand and prices for classic cars, with classic German, Japanese and Italian brands seeing the highest price increase. Our favourite brands to invest in are; Nissan, Honda,
Volkswagen and Lotus – while Ferrari, Lamborghini and Porsche offer great investment opportunities for those with more to spend. We estimate people could make around 45-50% on their investments in the next 12 months, and around 120% for more patient investors in the next 5 years.
6. Vintage wine – vintage wine is a no-brainer from an investment point-of- view, and represents one of the only investments you’re practically guaranteed not to lose money on – unless you drop the bottle… The good thing about investing in vintage wine is that the particular bottle you buy will no longer be in production, meaning that demand for the product should only go up, as bottles become ever-more rare. We recommend buying wine made between 1996 – 2002 – as many of these vintages offer a fantastic opportunity for future price rises, and have a more accessible entry price point for new investors. We estimate that investors could make between 60-75% on their original investment.
7. Classic Japanese superbikes – similar to classic cars, the market for Japanese superbikes has never been so busy, with some bikes fetching tens of thousands of pounds. Our best picks are the; Honda Dream MF350, Kawasaki Z1 900, Honda CBR900RR – these represent some of the more affordable options which could fetch a pretty penny in the near future. We
estimate collectors could make around 20-25% in the next 6-12 months, and more patient investors could cash in an extra 75-80% in the next 3-5 years.
8. Fashion brands – while watches, bags and jewellery are our top recommendations for investing in particular fashion brands, there’s also plenty of money to be made in other fashion items, such as shoes, sunglasses and jackets. Our favourite brands for future investments are; Chanel, Louis Vuitton and Gucci. We estimate that people could make around 65-75% on their investments, however on certain items this number could be much higher.
These are just some of the items and brands we’ve selected to invest in, however there are hundreds of different items currently available that have the potential to go up in value. One general piece of advice we like to follow is to invest in things you’re already passionate in – using the knowledge you already have on a certain brand, sector or product will always give you an edge over more casual investors, and can even help you spot a ‘future valuable’ which is yet to be recognised as a potential money-maker by other investors.
Offering one of the most exclusive marketplaces for high-net-worth individuals and VIP concierge services, HushHush.com connects a growing list of the world’s most wealthy consumers with luxury brands and products. HushHush.com collates some of the best unique luxury products available, from superyachts and hypercars to luxury villas and private islands, and partners with sellers to reach their audience.