5 Luxury Investments That Actually Pay Off

Artwork

Vincent Van Gogh may have only sold one painting in his entire lifetime, but do you know that his works currently cost around $148–152 million? Beautiful art pieces don’t just spice up your home; they are also lucrative investments. In 2018 alone, fine art was able to rise to the top of the luxury investment index with a market growth of 25%.

With the value of fine art pieces constantly on the rise, consider adding a piece in your home. Not all illustrations you buy may end up costing as much as a work of Picasso, but they can be sold for a decent amount after some years, especially if the artist you bought from becomes the next big name in the industry. Don’t be afraid to invest in a painting or two!

Designer Bags

There’s no denying that designer bags are essential pieces in fashion. Matched with the right outfit, they help you appear more elegant while satisfying your practical needs. But, aside from helping you look good, they’re also long-lasting pieces that continuously increase in value.

Luxury bags are direct indications of status, and products from well-known brands can already cost millions of pesos. Just like die-hard sneaker fans out there, thousands of luxury bag collectors are dying to get limited edition Chanel or Hermès products.

If you already have one at home, make sure to take care of it so you can sell it for a good amount in the future—or better yet, pawn your designer bag at PawnHero for some quick cash!

Note: Here are some luxury handbags you should consider buying.

Jewelry

“Diamonds are forever,” as the famous adage goes. When it comes to jewelry, this line bears truth. Behind luxury items like gold necklaces, pearl earrings, and diamond rings are strong emotions, so its value to the wearer is priceless. But in a practical perspective, these items are profitable investments.

Other than helping you look good, jewelry can double in value as they age. For instance, diamonds appreciate in value over time due to inflation and evolving market tastes, even as its price fluctuates based on supply and demand.

Choosing to invest in the right type can be very challenging since you need to consider different factors, such as maintenance, style, and quality. But, if you stay patient and treat your items with care, you can earn a significant sum in the future.

Watches

Watches are fairly similar to jewelry and luxury bags. They’re usually gifted to a person with sentimental value and have the power to make or break an outfit. But if you view it as an investment, a Rolex watch can have great value down the line.

Unlike more volatile investments like stocks, luxury watches can withstand a financial downturn. In fact, there has been an increased interest in luxury watches as investments since the start of the coronavirus crisis.

A luxury watch may cost hundreds of thousands of pesos, but because of its high resale value, you can earn a good amount if you sell it at the right time. If you’re going to buy one, make sure to save the box and paperwork to boost its resale value even more in the future.

Wine

Next to artwork, wine is known as the second-best luxury investment. The prices of many alcoholic beverages compound over time, but wine’s value is significantly higher than the rest. To give you an idea of how much you can earn, wine’s value has increased by 142% in the past ten years.

Investing in wine doesn’t mean that you’ll have to purchase a vineyard. It’s all about buying the perfect bottle. Given that there are a variety of choices available in the market, you need to do your research and make an effort to find the right leads. If you’re able to purchase the right ones, you can make returns as high as 8–12%.