The luxury fashion business frequently refers to its goods as assets rather than just things to be bought. Some watch collectors refer to their collections as “portfolios,” which are made up of investments that have the potential to hold their worth over time and even increase in value. However, recent occurrences have weakened support for the notion of investing in asset classes.
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Users together suffered huge losses after the early November collapse of the FTX bitcoin exchange. The average American buyer is in a difficult financial situation as a result of the deteriorating American economy and growing inflation. Despite other commodities and assets such as NFTs falling lower than ever, experts believe that luxury clothes will be able to maintain their appeal as a safe asset. According to Tirath Kamdar, general manager of luxury at eBay, one of the main draws for luxury buyers is that they may purchase items at a decent price and resell them later to repay some or most of the initial costs. In a survey of its users earlier this month, eBay found that 85% of respondents thought that luxury goods like watches were safer and less unpredictable investments than “other assets.”
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