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Wednesday, April 17, 2024

Money Matters - Where the Wealthy Invest

 

  • A recent study shows how the prices of luxury investment collectibles have changed over the past years, analyzing their prices for the past six years.
  • The luxury collectible with the highest price increase in the recent 6 years is The Van Cleef & Arpels Alhambra with a jump of 19.44%.
  • The second highest price jump is seen for the Cartier Love Bracelet with an 8.16% rise.
  • High-end designer bags mostly experienced price decline, with Chanel being the only exception in the list, as it experienced a price increase of 5.33%.
Arka.com's recent study shows the price changes of the most timeless luxury items over six years, sorting the data into two main categories: those with the highest increases in value and those with the biggest decrease.  To offer a comprehensive view of these changes, the analysis includes comparisons between 2018-2024.

Items with an Increase in Value:

The Van Cleef & Arpels Alhambra necklace tops the list of luxury investments with the highest price jump over the last six years, gaining 19.44% in value. It's considered a valuable investment in the high-end market as its price tends to rise due to its popularity and timeless appeal. Its famous clover design and high demand further secure its status as a top luxury asset.

The Cartier Love Bracelet ranks second among luxury investments, increasing by 8.16% in value. It's considered one of the most profitable luxury investments, because it’s always sold with higher prices in the secondary market. As an iconic luxury collectible, it never loses in demand and the price remains stable or increases making it even more appealing. 

The Bulgari Serpenti Jewelry takes third spot in the rankings, showing a 6.94% rise in price over the past six years. This increase confirms its status as a wise investment. This is not only due to its unique snake design and a rich history but also thanks to keeping its value and bringing in good returns from sales on the secondary market. 

The Chanel 2.55 bag is fourth on the list, with its value going up by 5.33% since 2018. It has proven to be a strong investment, sometimes doing better than the stock market, as shown by its 230% increase from 2004 to 2016. By keeping the supply limited, Chanel makes the bag more rare and valuable, which makes it a good choice for diversifying investment portfolios.

The Rolex Daytona ends the list with a 4.76% price increase. This watch is very popular among luxury watch fans because of its high resale value. Its rarity, increasing worth, and ties to racing history make it attractive to both collectors and investors.

Items with decrease in value

The Dior Lady Dior Bag leads the rankings with the most significant value drop, decreasing by 15.69% from 2018 to 2024. It has seen a drop, notably when compared to a competitor Chanel. While Dior bags typically gain value, recent pandemics and economic issues have lowered this model's worth.

The Patek Philippe Nautilus follows closely in second position, facing a 7.69% drop in price. Being one of the most sought-after investment watches on the luxury watch market, the drop is also linked to Patek Philippe discontinuing certain models, which influences the Nautilus line's market pricing and demand.

The Hermès Kelly bag takes the third place and has seen a slight decrease in value of 2.52%. The Hermès Kelly is considered one of the best short-term investments and it still remains a highly sought-after piece of investment despite having a price decrease. 

Chanel Tweed Jackets rank closely behind the Kelly bags at fourth position with a 2.27% decrease in value. Unlike Chanel bags, these jackets are not as significant as investment pieces and have experienced a slight drop, possibly due to changes in the brand's transition after Lagerfeld.

Finally, the Hermès Birkin (Togo) bags close the list and show a 1.86% decline. As one of the most popular collectible bags, the minimal decrease can be due to changing market trends and crisis. Given its small scale, this decline does not significantly impact the bag's status as a popular  item in the luxury market.

A spokesperson from Arka shared, "Watching the luxury market from 2018 to 2024 was like riding a rollercoaster. Even iconic items like the Alhambra necklace saw their prices fluctuate, a clear sign that luxury isn't immune to global challenges such as the COVID pandemic and the rising inflation. Yet, despite these shifts, the timelessness of certain luxury pieces stood out, as they managed to regain their value. This period has reshaped our understanding of luxury, showing us that it's not just about exclusivity but also about adapting to a changing world. When luxury brands and items navigate through economic ups and downs and still find a way to thrive, it's a powerful reminder of the sector's strength and its ongoing evolution against broader societal and economic changes.


Here are the results summed up: 
Luxury ItemCategoryPrice Change 2018-2024Increase/Decrease
Van Cleef & Arpels AlhambraJewelry19.44%Increase
Cartier Love BraceletJewelry8.16%Increase
Bulgari SerpentiJewelry6.94%Increase
Chanel 2.55 BagFashion5.33%Increase
Rolex DaytonaWatches4.76%Increase
Dior Lady Dior BagFashion-15.69%Decrease
Patek Philippe NautilusWatches-7.69%Decrease
Hermès Kelly BagFashion-2.52%Decrease
Chanel Tweed JacketsFashion-2.27%Decrease
Hermès Birkin (Togo)Fashion-1.86%Decrease

For the full study please follow this link: 

                         
Post courtesy of: https://www.arka.com/

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