As we constantly evolve our investment strategies, new forms of investing can be found in the most unlikely of places. Our wardrobes can become a form of investment, depending on the item and the value they hold.
Although investing in your wardrobe may seem unconventional and unreliable at first glance, there is a lot of return on investment to be made if you are smart and know how to execute your strategy correctly.
Which Fashion Items Hold Value?
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Various fashion items hold a tremendous amount of value. Perhaps you have a wardrobe of vintage pieces right now that might be worth thousands, or maybe you are in the process of looking for the best side hustles.
Some of the best fashion items experts say are valuable to invest in our jewellery items and handbags because they have a greater ability to hold and appreciate. This is not to say that clothing items such as vintage little black dresses and designer trainers do not have potential, however, they are not known to be as lucrative in the long term.
Another important factor to keep in mind is that most of these items will require quite a large initial investment regardless. Luxury designer items are the pieces that are generating high returns for fashion investors, due to the highly advanced and elegant designs that are well sought after even decades after their creation.
The Difference Between Consumption And Investing
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Many people who are buying more luxury items often make the mistake of assuming they are making smart investments just because the item has a large purchase price. Luxury items of course hold value, but many designers create their pieces with low-quality materials and place the designer name tag on just to make a profit.
There is a difference between consumption and investing, as consumption is done for the purpose of using items for current utility with no realistic monetary returns, whereas investing is done to make a return on profit.
Limited Edition Is Key
If you are looking to make the smartest of investments into fashion items, you might consider holding onto or selling limited edition items from luxury brands to create a return on investment. For example, if you manage to find a vintage Chanel bag below market value, you might have a great opportunity to hold onto the bag and sell it for profit when there is demand for such rare items. Target consumers who have the money to spend are happy to invest in such rare items for status and collection purposes, and the price of the bag can skyrocket if you find one limited edition.
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Many of the most beneficial investments will not show you a great return until further down the line. Much like property investment, sometimes the items have to age like fine wine, as we see trends and styles emerge only decades later.
The most timeless brands have seen massive increases in value years later such as vintage Gucci bags, and Chanel scarves from the 60s. The best of your investment may not see returns for a while, but they might be extremely worth it once we see a demand for like-new vintage items.
Keep in mind that not all fashion items will hold their value as expected. For example, if we look at new luxury brands such as Yeezy and Balenciaga, their overall desirability has dropped due to unexpected controversies. They would usually be a good investment for limited edition collaborations for reselling, however people are going against the brands for their poor branding representations.
Which Brands Are Good Investments
If you are still unsure as to where to start, we have a list of a few of the most lucrative investments you can make in the brands that are most reliable:
Hermes’ limited edition range of handbags is known as some of the most expensive handbags. Their Kelly and Hermes Birkin bags are widely sought after, as only select individuals are even allowed to purchase these bags from Hermes stores. They often sell above their original resale price, as long as they are well-kept and in pristine condition.
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If you haven’t heard of Rolex, you’re missing out. They are one of the most sought-after watch brands in the world. They are renowned for holding value, especially during circumstances where the stock has not met the demand. There is also a long wait time for the creation of these watches, so holding after the most detailed designs is sure to offer you a return on investment. Often, people can see the value of the watch increasing by a minimum of $10,000 within the space of 12 months.
Vintage Chanel in particular has seen a price boom in recent years. The classic styles that Chanel has embodied for years have recently come into widespread popularity, and Chanel’s most popular flap bag style has seen constant increases in value and price. This means for those people who are looking to invest in reliable, quality brands, Chanel might be the right one for the long run.
As with any investment, you should only spend the money if you’re able to afford it and you need to remember that the value of these good can go down as well as up. What is fashionable now may not be in the future so your investment might not be worth as much as you think it will be.
You’ll also need to decide if your purchase is going to be something you want to use on a regular basis or if you’re happy to store items away and only use them on special occasions (if at all).
The main thing is though that you just buy something that you like and that fits your budget and style.
Have you bought any expensive clothes or accessories as an investment or do you prefer to use what you buy? Let us know in the comments below.