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9 Luxury Items the Rich "Invest" In, Should You?

Many people assume all luxury items will retain their value and thus be worth more in the future — but not all high-end items are created equally

By Laura Gesualdi-Gilmore

Edited by Lauren Wellbank

Updated Nov. 5, 2024

Luxury goods, like designer handbags and watches, are not just status symbols. They can also be investments and help savvy buyers build wealth. Some luxury items seem to be well worth the money upfront, like a Chanel bag that a buyer reported purchasing in 2016 for less than $5,000 that more than doubled in value by 2024.

However, not all luxury items are going to be big money makers. Below, we've put together pros and cons of investing in an array of luxury goods.

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Handbags

Before you start investing in luxury goods, it's important to do research on how much startup money you'll need. If you're into fashion, it may seem like a no-brainer to invest in a bag from an established designer like Chanel or Louis Vuitton with a plan to resell it years later for a profit.

In the pro category, you can find many Chanel bags on the resale market with five digit price tags. However, not all bags will yield such high returns.

The classic, timeless pieces seem to go for the most money, so purchasing a trendy bag (no matter how stylish it seems today) could be a total bust.

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Watches

Luxury watch brands like Rolex have been known to seriously appreciate in value over decades. However, it's not quite as easy to trade lesser-known brands on the secondary market.

If you're hoping to make a profit, you may need to invest a few thousand upfront for the high-end products.

On the plus side, watches are an asset you can wear, many hobbyists enjoy collecting timepieces, and certain brand names are well-known to retain value.

Art

According to art consultants Artelier, investing in art can be more stable than putting money in the stock market as value tends to continue growing over time.

Artelier cited a study that showed art increased in value by 3.9% each year between 1957 and 2007.

On the plus side, investors can rest assured that the value of works from highly respected artists will increase over time — however, it's also important to realize that it can take years for the works to accumulate real value. Art is not for those looking to turn a quick profit.

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Jewelry

Many people love jewelry and will buy it regardless of how much it can be resold for. If that's you, know there are some pieces that are more likely than others to retain value.

There's some conflicting information among sellers about the lasting value of diamonds. The consensus seems to be that you'll need to either invest six figures up front or hold onto a piece for several generations for it to be worth the investment.

However, certain brands do tend to retain value, with Who What Wear reporting that a product like Cartier's Juste un Clou bracelet can be counted on to hold 106% of its value.

Sneakers

These days sneakerheads — another name for those who find and collect interesting or rare pairs— are becoming more and more common.

A pro of getting into the sneaker selling business is that you could turn a fun hobby into a lucrative side hustle, and rare pairs can go for tens of thousands of dollars. For example, a pair of "Jaspers," a collab between Kayne West and Louis Vuitton, is reportedly worth up to $30,000.

The downside of getting into selling sneakers, aside from the startup investment, is this is a very competitive market, and it may be tough to start making money.

Designer clothing

These days, there are many services available to resell clothing online. Unfortunately, many sellers have reported having issues selling luxury items on popular resale apps like Poshmark.

A pro of investing in designer clothes is that you can get a lot of use out of them yourself before selling. Plus, certain pieces from designers like Burberry and Chanel are considered timeless.

A classic item like a Chanel tweed jacket will likely retain much of its value and many are listed today for several thousand dollars online.

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Classic cars

Classic cars can be a good investment if you have the initial startup money to devote to a high value vehicle and are interested in ensuring it's well maintained.

Reports indicate that mid-range cars do not yield the return many investors hope for. If you don't want to shell out for the luxury brands, owning and maintaining a classic car may be more of a hobby than an investment opportunity.

If you have the time and money to invest, rare cars can yield big returns. The Aston Martin DB5, for example, can be (and has been) auctioned for several million.

Wine

Whether you are planning to store and display the wine yourself or add it to your investment portfolio, wine is another luxury item that can yield high returns.

Fortunately, wine seems to be recession resistant. During the Covid-19 pandemic, for example, when other stocks plummeted, the price of fine wine decreased by only 1.4%.

Another pro is that if your investment fails to garner a big return, you can drink it. The downside is that, like fine art, high-end wines typically take a while to appreciate value.

Leather goods

Leather goods from top designers, like belts and wallets, tend to retain their value as well. A perk of investing in these products is that the startup money will be significantly less than many of the other categories on this list — and the pieces often retain value.

For example, a 2023 report points to Chanel cardholders emblazoned with the iconic double C logo, which retained 126% of their value.

The downside is that the smaller investment upfront likely means less of a return later.

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Bottom line

Purchasing valuable products is an easy way to start investing and build a new stream of income. However, it's critical to do your research first.

Investing in something like high-end art or wine could net you a huge profit, but investors must first decide if it's worth the wait.

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Author Details

Laura Gesualdi-Gilmore

Laura Gesualdi-Gilmore is a seasoned freelance writer who also teaches writing courses at Rutgers University. She's based in Jersey City and enjoys travel, live music and, of course, spending quality time with her pup.