Investing in Luxury Goods During Economic Crises
From oil paintings to vinyl records and classic cars, high-value luxury items represent a specific type of asset which will go up in value over time and which are reserved for only those who can afford them. The same is true of items like luxury watches, gold and jewelry, all of which can serve as a store of value and as a hedge against inflation, and it is these items, particularly watches and jewelry, which are now increasingly being bought during times of economic uncertainty.
One could easily consider Bulgari’s jewelry for example as a “safe investment,” and many do, and certain luxury watches possess a special, artisanal edge, being handcrafted, made with superior expertise and crafted with high-quality, globally-recognized materials, making them enviable to wide market audience.
So what is it that watches in particular can offer buyers, specifically during global turmoil?
One must first discover clear and unmistakable details about luxury watches to be certain each is worthy of buying. Is it a limited edition release? Is it a vintage model with an iconic legacy? Is it in top condition with all original parts? Is it being offered on a trustworthy marketplace? Is it coveted by collectors? Does it have certain exclusive features like a tourbillon or moon phase complication?
Luxury watches are timeless and ultimately unique, with some gaining significance from the actual horological (watchmaking) technique invented specifically for that model of timepiece; likewise, certain watches come from legendary brands and are intimately associated with well-known celebrities or events.
Items such as the iconically designed Rolex Submariner for example remain the benchmark for modern dive watches and have set the template for their particular sector of timepiece, recognized around the world and now available for verified purchase to whomever wishes to have them.
Further, the market for certain models remains strong globally, as certain model’s respective time of release and limited supply guarantees that demand remains high. Price data clearly shows certain luxury watches such as the Rolex Submariner, TAG Heuer Carerra, and Omega Seamaster 300 continue to rise in value.
High-value watches such as the Patek Philippe Steel Nautilus, Reference 5711, the Omega Silver Snoopy, the Audemars Piguet Royal Oak Jumbo Reference 15202ST, the Rolex “James Bond” Submariner Reference 6538 or the Rolex Daytona Reference 16520 can all serve as excellent candidates for insuring one’s wealth against inflation.
The ability to verify provenance and authenticate the origin of luxury watches and precious jewels through global registries is another crucial factor in using such items to protect wealth during periods of global economic uncertainty, thus offering market actors a location-independent method of money conversion and implicitly insuring their wealth and savings.
Marketplaces like eBay have offered the ability to list or buy luxury watches at-will, and now blockchain-based marketplaces such as LuxFi are taking full advantage of blockchain-enabled NFT technology to clearly and inarguably define the key product information required for making important, albeit life-changing decisions, about high-value items.
So what is the future of such luxury investments? One argument can clearly be made that such watches and jewelry will continue to go up in value. It is this clear economic guarantee which is increasingly becoming a top choice for people who wish to move wealth into new asset classes, and with clear and impenetrable support from technological frameworks like blockchain, such investments in luxury items are a clear winner for storing value irregardless of the state of international crises and otherwise insolvent global economies.
LuxFi is the world’s first asset-backed NFT marketplace for luxury assets, where people can buy, sell and invest in luxury assets using cryptocurrencies and traditional payments. We eliminate counterfeiting while minting an NFT on a multi-chain blockchain network, with a focus on luxury assets that hold value well and have a high resale value. Leveraging our big data intelligence system and unique algorithm for automated data collecting and data processing, the value of each NFT on our platform is backed by real-world data.
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