Not stocks, in this case. But ultra-luxury investments.
Your wealth advisor, if you have one, may not tell you this, but securing alternative investments in ultra-luxury brands like Chanel, Rolex, and Hermes can be, well, smart. Certainly an unlikely move, but a strategic one. Especially as we face an impending recession. During past economic downturns, like what happened in 2008, traditional stock investments have historically performed well. Particularly, sectors within consumer goods and healthcare. And outside of that, so did handbags (disclaimer, we speak for ourselves; this is not financial advice).
Now, at times of high-inflation caused by increased interest rates, securing alternative investments in ultra-luxury can seem questionable and ill-advised. But contrary to what may be the “unpopular” opinion, the desire for ultra-luxury doesn’t just change overnight. The only thing that inevitably changes is the price tag.
Recession or not, you can always buy a Chanel Double Flap for example – granted, if your wallet can do so. The question is, when is a good time? As the climate of our current economy may feel unnerving, the reality is, prices are lowering – but only lowering to more sensible ranges. And the good news? This could actually suggest a good time to stash your cash in a high-end handbag. Here are some investment pieces you can shop for now that hold their value, even through a recession (and of course, after).
Market Changes Impacting Ultra-Luxury Demand
First things first. Why are we saying the following items are good investments? Here is a little bit of context. Supply and demand fluctuate. That’s normal. From Chanel to Patek Philippe, most premier luxury brands over the last few months saw an all time high in market valuation in the pre-loved market, due in part to post-pandemic hiccups and supply chain shortages. Despite these events, people were still buying – all in the name of securing long-term luxury investments. These in some cases beat investments in gold and stocks.
Now with the market starting to cool down, ultra-luxury price decreases are triggered by people collectively selling their alternative assets – a consequence of rising interest rates, higher than average gas prices, stock market losses, and just overall cost of living.
For a while, demand surpassed supply, making limited edition and hard-to-get watches and handbags really sought after. But now, when supply is slowly surpassing demand, that doesn’t mean these items are not desirable. It just means consumer behavior is shifting because of economic challenges. This is seen across the board from collectors suddenly selling their timepieces, to price drops on real estate listings. It’s an economic issue. Not an ultra-luxury issue. Despite changes in the financial market, covetability for houses, gold, and of course ultra-luxury handbags, watches and jewelry will never perish. There will always be a level of desire to acquire assets like these.
Which brings me to the point of this entire post: the investment pieces that hold their value… no matter what. Read on!
Luxury Watch Investments
Luxury timepieces are hot. So hot that as of late they’re replacing traditional engagement rings, Engagement watches, anyone? As more people tap into the watch world, more people become fascinated with the horological advancements and impeccable craftsmanship that make the big names so desirable. There are so many (and too many to list here), but the premier watches that saw the greatest increase in sales and had notable growth this year (speaking for FASHIONPHILE), are Rolex and Patek Philippe. Despite crypto losses bringing down prices of luxury watches right now, they’re still substantially valuable. And who’s to say that they won’t skyrocket again in the years to come?
Rolex, particularly, dominates. It’s the timepiece you need to watch. Year over year, we see sales for Rolex watches at FASHIONPHILE surpass other notable brands. So what makes Rolex so covetable? The exclusivity behind their watches. You can’t just go into a boutique and ask for a Rolex Daytona with an Ice Blue dial. They’ll just tell you it doesn’t exist. But, if you’re someone with prior sales history or have a good relationship with the brand, you might get note of some special releases. The point is, anyone can get a standard Rolex watch (and the classics are amazing). But oftentimes, it’s nearly impossible to get a hold of rare grails unless Rolex wants you to get a hold of them. That’s why when those kinds of pieces end up at FASHIONPHILE, we know they’re special.
Patek Philippe Watches
Which brings me to Patek Philippe. What’s not to love about PP? If you closely observe the wrists of LeBron James, Ed Sheeran, Leonardo DiCaprio among others, you may have noticed some pretty timepieces. All avid wearers of Patek, we can’t help but admire their collections from afar – especially the ultimate status symbol, that is the Patek x Tiffany Nautilus 5711. Yep, as far as we can tell, they’re all owners of one.
Patek Philippe watches are extremely rare because of the few quantities made. Often there is a waitlist that stretches out for years – they’re unquestionably exclusive. As one of the oldest watch manufacturers in the world widely known for their precision engineering and impeccable craftsmanship. Their pieces are of the highest quality without sacrificing style. It comes as no surprise that Patek Philippe holds the title as 1 of 3 of the Holy Trinity of watches.
Luxury Handbag Investments
In the world of handbags, the following brands are pretty obvious. That is, Chanel and Hermes. Both are growing in demand, with sales at FASHIONPHILE continuously increasing year over year. For decades their products have always been synonymous with luxury and status. But two styles come to mind that are particularly valuable.
Hello, Chanel Double Flaps? Their annual price increases alone justify the rate at which they’re growing in value, especially in the resale market. You can learn everything about how to maximize your profits here.
The Chanel Classic Flap is one of the most important, celebrated, and recognizable handbags in the fashion industry. There is so much to know about Chanel Flaps that it makes total sense (at least for us) to create the ultimate guide about it. You’re welcome. If your love language is receiving gifts, well, treat yourself! Although not a Double Flap, these Chanel investments under $5000 are worth it. Not only is a Chanel item an investment towards yourself but Chanel pieces will surely reap rewards in the future – whether you decide to pass it down or sell it!
The addition of a Birkin bag to your collection is without question. If you’re a first-time investor, here is a guide to Hermes and the best colors to buy for a sound investment. The world of Hermes is vast and includes some incredibly rare pieces, including the Himalaya Birkin and Special Edition Hermes bags, as well as Horseshoe bags. If this is all new to you, be sure to hit those links to learn!
Fine Jewelry Investments
When you think of an investment, you may instantly assume stocks, bonds, or real estate. But fine jewelry is incredibly important, too, as far as investments go.
The value of Cartier jewelry is unquestionable.There is great opportunity in Cartier, especially the LOVE collection. And one of the best-selling pieces at FASHIONPHILE is the Cartier LOVE bracelet – for good reason. This style is a classic and has been around since 1969. The symbolism, evolution, and history behind this iconic piece is truly substantial. Nothing quite measures up to the Cartier LOVE bracelet. If you’re looking to add one to your collection, be sure to check this sizing guide on everything you need to know before locking in Cartier LOVE bracelets.
Van Cleef & Arpels Jewelry
Another piece of jewelry to consider investing in is the Alhambra collection from Van Cleef & Arpels. If you never thought about it, it’s time to get acquainted with it. These pieces retain their value and always grow in value in the resale market. VCA is notorious for their long wait times (that can stretch out for months) when it comes to acquiring their most sought-after pieces. Parking your money in one of these is a smart choice.