Investing in fashion may bring higher returns than a savings account, as new data shows. And it is not just exotic-skinned Birkin bags which could yield a mighty profit.
An investment study by Raisin, a savings marketplace, reveals trainers, handbags and watches are some of the world’s biggest money-makers.
The study revealed the price increase between the original and resale value of trainers including Air Jordans, Yeezy’s and Adidas. The yearly interest rate on some trainers surpassed 500 percent.
For example, special limited edition Adidas Blackburn Spezial’s released in 2016 that at the time cost 100 pounds, sold for 56,000 pounds this year. The original limited edition collection saw only 160 pairs produced as part of a charity collaboration, hence their scarcity. In another example, Air Jordan sneakers from the first Virgil Abloh’s Off White x Nike collaboration retailed for around 200 dollars and could now fetch around 40,000 dollars, an increase of nearly 20,000 percent on the original investment. A pair of colourful trainers sold by Lidl earlier this year for 14 pounds had a re-sale value of 450 pounds, a good fast fashion investment if ever there was one.
Watches and luxury timepieces are a good category for investing in, with Raisin finding a Patek Philippe Stainless Steel that cost a hefty 1,242,870 million pounds when it was first sold went at auction for 3,617,503 million pounds.
According to Raisin an average a designer purse in its study increased 5,392 pounds per annum, around 2.39 percent - a higher interest rate than most saving banks.
New records for online luxury auctions
In fashion, luxury watches appear to be the best investments, followed by luxury bags and trainers. Christie’s set a world record for a jewel sold in an online-only auction when a 28.86-carat, D colour diamond sold for 2,115,000 in June, noted the Financial Times. In July Sotheby’s broke its own world record for a watch sold in an online auction for a 1960s John Player Special Rolex Daytona, which sold for 1,215,000 million pounds.
Images courtesy Raisin