Next time you buy a luxury item, be stylish and savvy! Make a purchase that won’t lose value. What kinds of luxury items hold value? You’d be surprised to learn why diamonds, gold, wine, and more can be the smart and fashionable choice. Find out what other items make the list, so you know when to splurge.
1. Gold
When people recommend investing in gold, you might question what value it has. Well, buying gold is considered a hedge investment. Meaning, buying it strengthens currency. So, folks with disposable income might consider purchasing gold as a way to ensure their cash doesn’t lose its value, either. Another reason some investors buy gold is that it can be a direct investment. Gold, like many luxury items that are also used as raw materials, sees a steady increase over time. It may decline here and there, but the demand for it has barely waned. These days, there are many contemporary styles for wearing gold. White gold has been particularly popular, especially for engagement bands.
2. Diamonds
Diamonds aren’t just a girl’s best friend, they’re everyone’s best friend – so long as you’re buying the right kind. These days, there are diamonds that are grown in a lab, but there’s some contention over whether that’s the right kind of luxury investment to make. Traditional diamond retailers don’t like the idea of synthetic diamonds one bit, but consumers can’t tell the difference. However, the market can tell the difference. First, if you ever want to resell a manufacture diamond, you might have some trouble because most diamond traders don’t deal in them. So, if you want to make a luxury purchase that has resale value, or in other words, retains its value, be sure to go for the real thing.
3. Fine Art
The wealthiest people in the world are the biggest buyers of fine art. The first reason seems obvious: they can afford it. However, why would a multi-millionaire purchase fine art, even if they aren’t a fan? People with a large amount of expendable income begin to invest in art because of how it retains value. It’s basic supply and demand, really. There’s only one Mona Lisa, and Da Vinci is considered one of the world’s greatest artists, so the work is priceless. Of course, you can’t buy a Da Vinci, but you can buy works from artists who are expected to excel or have recently increased in value. If you’re interested in buying fine art as a fashionable investment, consider working with an art dealer who can point you in the right direction.
4. Designer Bags
Fashion is often thought of as a trend rather than an investment, but that’s not the case for certain designer bags. How can you tell which brands to buy? Just measure the brand’s hardware, leather and demand. Box Calf, Clemence, Epsom, and Togo leather are the most likely to retain value. As for hardware, go for anything that has gold plated or palladium locks, lockets, buckles or accents because these materials don’t tarnish like metal. Finally, it comes back to the market demand for that kind of purse. Handbag makers who have limited lines can’t see double or triple the markup in resale value. Vintage handbags are another avenue, but that could take some scouring through consignment shops and estate sales.
5. Burgundy Wine
Named after a region in France, Burgundy wines are some of the few to retain their value. Like always, the demand for this region’s wines has something to do with their worth, but it’s also because of how well known the wineries are around the world. Some of them have been around for hundreds of years, and likewise, so have some of the bottles of wine they’ve produced. However, you can start small by purchasing $15-$20 bottles, and hanging onto them for a while. For it to really pay off, you’d have to buy in bulk, and keep them properly stored.