Buying luxury goods can sometimes be more of an investment than just the initial purchase. According to Knight Frank, things like rare whiskey and classic cars decreased in value in 2023, compared to the previous year while art and jewelry gained in value. What kind of luxury goods are gaining in popularity that may gain value?
TheRealReal (REAL) VP of Merchandising Sasha Skoda joins Wealth! to break down which luxury items can gain value over time.
For more expert insight and the latest market action, click here to watch this full episode of Wealth!
This post was written by Nicholas Jacobino
Video Transcript
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BRAD SMITH: Lifestyles of the rich and famous seem so luxurious. And while we may not be able to spend like them. We can take a peek into the world every once in a while. Our wealthy shoppers over clothes and bags. According to Knight Frank’s wealth report, handbag values were down 4% in 2023. So what luxury goods are people buying right now? Here to let us know. We’ve got Sasha Skoda who is the real reel vice president of merchandising.
Thanks so much for taking the time here today. I’ve just got to know what I need to purchase for it to actually accrue more value over time, even though I want to go out there and flaunt, and make sure that everybody knows. Hey, yeah, it’s that bag that you all saw. And it’s actually gaining value at this point. What is the hot topic? What’s the hot item right now?
SASHA SKODA: Yeah. I mean, I think it’s interesting, the notes that you had earlier around handbags. Handbags are actually one of the categories where we’re seeing increase in value, particularly a brand like Hermes. And so a brand like Hermes is something that you and I, we could not walk into an Hermes store today and walk out with an Hermes Birkin or an Hermes Kelly, for example. And due to the scarcity of those items, they do increase in value over time. In general, we see these bags sell on average for up to 25% more than the original price.
And depending on the comfortability and the style, they can sometimes go for up to three times more than the original retail price.
BRAD SMITH: Wow. OK. All right. So that’s the bag side. What else are the other hot items that typically accrue a little bit more value?
SASHA SKODA: Yeah, so we’re looking at the hard luxury goods then so fine jewelry and watches. Fine jewelry is interesting right now, typically you’re going to see branded fine jewelry. So brands like Tiffany, Cartier, Van, Cleef, Arpels. But more recently we’re actually seeing trends in unbranded jewelry. And so I’m sure as you know the price of gold has skyrocketed this year. And that’s driving up the prices of unbranded 18 karat gold fine jewelry. So you’re going to see classic pieces like necklaces, rings, earrings and again in 18 karat gold.
Those are going to have really strong resale values right now.
BRAD SMITH: What luxury items are people selling? Where are you seeing the most listings come in from?
SASHA SKODA: Yeah. I mean, I think what’s interesting is actually we see similar trends amongst buying and selling. I think that if you think about the nature of the cycle of these luxury goods. If you have customers in the primary market who are going out and wanting to purchase a new handbag, they’re probably having one in, one out mentality. So they’re going back into the closet. They’re going to consign one of their old handbags and that’s where we’re seeing the demand on our side as well. So we actually see really similar trends in terms of what people are buying and selling. And I would say right now handbags are our two hottest categories.
BRAD SMITH: All right. You didn’t mention any of my sneakers. So I guess I’ll sit on those or maybe just wear them outside. Sasha Skoda, who is the real vice president of merchandising. Thanks so much for taking the time.
SASHA SKODA: Of course, thanks for having me.