Are you looking for crisis-proof investment opportunities beyond stocks and real estate? Luxury goods could be an interesting option with annual growth rates sometimes exceeding 5%. Find out here how you can diversify and protect your wealth with exclusive timepieces, rare collectibles, and sought-after design objects.
Chat with ImmoGPT for free now.
With access to Google, BORIS, and Deep Research.
The topic briefly and concisely
Luxury goods such as watches, art, and vintage cars can be stable investments with annual growth rates of over 5% and offer an attractive diversification of the portfolio.
Successful investments in luxury goods require expertise, a long-term perspective, and careful selection based on brand, rarity, and condition.
Risk management through diversification, professional appraisal (e.g., using Auctoa methods), and consideration of provenance are crucial to fully exploit the potential of luxury investments.
In times of economic uncertainty and volatile financial markets, many investors ask themselves: How can I not only secure my assets but also increase them? An often overlooked yet potentially lucrative asset class is secure investments in luxury goods. These exclusive items are more than just status symbols; they can offer impressive value stability and even appreciation. The global sales of luxury goods reached over 360 billion euros in 2024, with forecasts predicting further growth. This article shows you which luxury goods are suitable as investments, how to recognise their value potential, and which strategies you should pursue for successful investing. Discover how you can optimise your portfolio with the right selection and expertise.
Market Overview: Why Luxury Goods Convince as an Investment
The global market for luxury goods demonstrates impressive resilience and continuous growth, even in economically turbulent times. In 2019, global sales of luxury goods (excluding cars, yachts, etc.) already reached 270 to 275 billion euros. By 2025, a market volume of around 400 billion euros is forecasted, corresponding to an annual sales growth of approximately 5.44 percent. These figures illustrate the potential inherent in secure investments in luxury goods.
A significant driver of this growth is the increasing demand from emerging markets, particularly China, where consumers show a strong affinity for Western luxury brands. However, new buyer segments such as Generation Z and so-called HENRYs (High Earners Not Rich Yet) also significantly contribute to market growth. For these groups, luxury items are not only status symbols but also expressions of personality and are increasingly seen as long-term value investments. The right strategy for luxury investments is crucial. Exclusivity, often created through artificial scarcity, and high quality ensure the value preservation of many luxury products over decades. This makes them an attractive option for investors looking to diversify their portfolio and build wealth in the long term.
Top categories for secure investments in luxury goods
Not all luxury items are equally suitable as an investment. However, certain categories have proven to be particularly high-yielding and stable in value. These primarily include luxury watches, fine art, classic cars, and more recently, designer handbags. The careful valuation of luxury goods is an important first step in this process.
Which luxury goods offer the greatest potential for value appreciation?
Luxury Watches: Brands like Audemars Piguet, for example, demonstrated an average value increase of an impressive 64.85 percent between 2019 and 2024.
Art: Viewed in the long term, few other forms of investment have multiplied capital so sustainably.
Classic Cars: The classic car index (OTX) from Südwestbank has recorded a gain of 481 percent since 2005, significantly more than the DAX (227%).
Designer Handbags: Certain models from Chanel or Hermès can experience significant increases in value.
Selecting the right item within these categories requires expertise and market knowledge. Factors such as brand, rarity, condition, and provenance play a crucial role in the potential for future value development. A professional valuation, such as that offered by Auctoa, can help you make informed decisions and separate the wheat from the chaff.
Luxury Watches: Timeless Elegance with Impressive Performance
Luxury watches have long been considered one of the safest and highest-yielding investment forms in the luxury segment. The demand for high-quality timepieces from renowned manufacturers such as Rolex, Patek Philippe, Audemars Piguet or Vacheron Constantin remains consistently high. These brands are synonymous with exceptional craftsmanship, timeless design, and strict limitations, continually enhancing their value. A five-year analysis by Chrono24 revealed that the most popular brands have been able to increase their value by an average of over 20% since 2019.
Particularly noteworthy is the performance of individual brands and models:
Audemars Piguet: Average value increase of 64.85% over five years.
Vacheron Constantin: Watch prices rose by an average of 52.27%.
Cartier: An increase of 39.06%, with individual models like the Cartier Santos (Ref. 2960) even rising by 160.35%.
Patek Philippe: Value increase of 33.59%.
Omega: An increase of 27.81%.
Even market leader Rolex recorded a solid increase of 27.59%. These figures impressively demonstrate the potential of secure investments in luxury goods such as watches. For a detailed valuation of your luxury goods, the experts at Auctoa are at your service. The right selection and timing of purchase are crucial, as is the proof of authenticity and origin. The trend towards 'Quiet Luxury' and sporty stainless steel models further fuels demand.
Art as an Investment: Emotion and Return Combined
Investing in art is more than just a financial transaction; it is often an emotional decision and can contribute to personal enrichment. Nonetheless, art has proven itself over long periods as an asset class capable of sustainably multiplying capital. The art market is continually evolving and reaching new buyer demographics, enhancing the interest in high-quality art objects as an investment.
A major advantage of art as a tangible asset is protection against total loss, especially with works by well-known artists. Unlike stocks, art is also less susceptible to short-term market fluctuations. However, successful art trading requires an in-depth engagement with artists, market knowledge, and often patience, as art usually represents a long-term investment. Value development can be volatile, and additional costs for storage and insurance may incur. For heirs and property owners who have art objects in the estate, a professional appraisal by Auctoa can provide clarity on the current market value and assist with sales decisions. Auctoa's ImmoGPT chat can quickly answer initial questions.
Key aspects of investing in art:
Long-term perspective: Value appreciations often require years or decades.
Expertise: Assessing quality, authenticity, and market potential requires expertise.
Diversification: Art can be a good component for diversifying a portfolio.
Tax considerations: Profits from private sales transactions can be tax-free after a holding period of one year (profits up to €600 per year are tax-free anyway).
Investing in emerging artists carries higher risks but also greater profit opportunities, whereas established artists often represent more stable, albeit more capital-intensive investments. Thorough research and, if necessary, consultation with luxury goods appraisal experts is essential.
Classic cars: Garage gold with impressive value development
Classic cars, often affectionately referred to as "garage gold," have established themselves as a notably lucrative class of investment in recent years. The classic car index (OTX) calculated by Südwestbank has shown a value increase of 481 percent since its launch in 2005. This clearly outperforms the returns of many traditional investments like stocks (DAX +227%) or German government bonds (REX-P +42%) over the same period. This trend highlights the potential of secure investments in luxury goods in the automotive sector.
German manufacturers' models such as Porsche, Mercedes-Benz, and BMW, as well as international classics, are particularly popular and have sometimes experienced significant increases in value. For example, an Opel Manta B GT/E saw a price rise of 31.21% in 2022. A Porsche 944 also increased by 19.43%. For an investment to make sense from a return perspective, an entry price of at least 100,000 euros is often recommended, with annual ancillary costs of 3 to 5 percent for insurance, maintenance, and upkeep needing to be considered. The valuation of luxury real estate can show parallels here in terms of the complexity of value assessment.
Key factors for the value development of classic cars include:
Rarity and production numbers: Limited models are particularly sought after.
Condition and originality: A well-documented original condition enhances value.
History and provenance: A complete history increases the value.
Market demand: Certain models and eras are especially popular.
The number of classic cars in Germany is steadily growing; as of 1 January 2023, 793,589 vehicles with and without historic plates are registered, an increase of 8.4 percent compared to the previous year. A professional assessment, like the one Auctoa offers for real estate, is also essential for high-quality classic cars to realise their full value potential. Contact us for an impartial evaluation.
More lucrative luxury assets: Handbags and diamonds
In addition to established asset classes such as watches, art, and classic cars, other luxury goods are also becoming more significant for investors. Exclusive designer handbags and high-quality diamonds, in particular, are increasingly coming into focus. An expert opinion suggests that some designer bags may even be a better investment than gold. For instance, a Chanel Classic Flap Bag purchased in 2019 for 4,500 euros was sold three years later for over 7,100 euros, representing a 57 percent profit. Brands like Hermès, Chanel, Louis Vuitton, and Gucci generally have a high resale value.
Diamonds, on the other hand, are more complex as an investment. They do not yield continuous returns and require considerable expertise in assessing quality (colour, clarity, cut, weight) and value. There is no liquid stock exchange trading, and the trading margins can be substantial. Nonetheless, high-quality diamonds can serve as a long-term store of value and protect against inflation but should only constitute a small part of a diversified portfolio. The insurance of such luxury items is an important aspect. For an informed decision and to minimize risks, a neutral evaluation, such as that offered by Auctoa in the real estate sector, is also beneficial here. Our ImmoGPT chat can answer initial questions about valuation principles.
sichere-investments-luxusguter
Although secure investments in luxury goods can promise attractive returns, they are not without risks. Careful planning and risk management are therefore essential. Potential risks include market fluctuations, counterfeiting, limited liquidity, and dependence on fashion trends or the reputation of a brand. Newer investment forms such as fractional ownership add legal uncertainties and dependency on platform decisions. An increase in value is never guaranteed.
Strategies to mitigate risk:
Diversification: Don't put all your eggs in one basket; instead, spread your investments across different luxury goods or asset classes.
Seek expertise: Use the knowledge of professionals for selection, valuation, and purchasing. Auctoa offers you quick and impartial valuations.
Long-term investment horizon: Many luxury goods realise their potential for value increase only over several years.
Provenance and authenticity: Pay attention to complete proof of origin and authenticity.
Insurance and storage: Protect your valuable items appropriately.
Thorough research and a realistic assessment of one's financial capabilities and risk tolerance are fundamental requirements. The strategies to mitigate risk, as also applied in property valuation, can serve as a model here. Contact Auctoa now for an appraisal of your luxury goods or use our ImmoGPT chat for initial guidance.
Conclusion: Investing in luxury goods with expertise and strategy
What makes luxury goods a safe investment?
Their value stability often stems from exclusivity, high quality, brand reputation, and artificial scarcity. Many luxury goods are less susceptible to economic fluctuations than traditional investments and show increasing demand in the long term.
Do I need a lot of capital to invest in luxury goods?
That depends on the type of luxury good. While some vintage cars or artworks require large sums (e.g., vintage cars recommended from 100,000 euros), there are also entry opportunities with lower capital through fractional ownership platforms or by purchasing shares/ETFs.
How can Auctoa assist me with investments in luxury goods?
Auctoa is an expert in fast, AI-supported, and neutral valuations. Although our focus is on real estate, the principles of valuation and risk assessment are transferable to high-quality tangible assets. Our ImmoGPT chat can answer initial questions, and we can help you better assess the value of your assets.
How important is provenance in luxury investments?
Provenance (proof of origin) is extremely important. A complete and documented history can significantly increase the value of a luxury item, whether it's art, a vintage car, or a watch, and serves as proof of authenticity.
Are luxury goods liquid assets?
Generally, luxury goods are less liquid compared to, for instance, shares. Selling can take time, as often a specific buyer group needs to be targeted. However, sales can occur quickly for some highly sought-after pieces.
What role does sustainability play in luxury investments?
Sustainability is becoming increasingly important in the luxury segment. Customers are paying more attention to production conditions and the origin of materials. In the long term, sustainably produced luxury goods could experience higher value stability or appreciation.
Additional useful links
Statista offers a detailed outlook on the luxury goods market in Germany.
Statista provides specific data on market volume in the luxury goods segment in Germany.
Mordor Intelligence offers a comprehensive report on the German luxury goods market.
Mintel analyses consumer attitudes towards luxury in Germany in its report.
Spherical Insights delivers a detailed market report on the luxury goods market in Germany.
Europa-Universität Viadrina provides an academic paper on the subject of luxury goods.
Universität St. Gallen (HSG) offers an academic treatise that deals with aspects of the luxury goods market.
FAQ
What makes luxury goods a safe investment?
The stability of their value often relies on exclusivity, high quality, brand reputation, and artificial scarcity. Many luxury goods are less susceptible to economic fluctuations than traditional investments and show increasing demand over the long term.
Do I need a lot of capital to invest in luxury goods?
This depends on the type of luxury good. While some classic cars or artworks require large sums (e.g., classic cars recommended from 100,000 euros), there are also entry opportunities with lower capital through platforms for fractional ownership or the purchase of shares/ETFs.
How can Auctoa assist me with investments in luxury goods?
Auctoa is an expert in quick, AI-supported, and impartial assessments. While our focus is on real estate, the principles of valuation and risk assessment are applicable to high-value assets. Our ImmoGPT chat can answer initial questions and assist you in better assessing the value of your assets.
How important is provenance in luxury investments?
Provenance (proof of origin) is extremely important. A complete and documented history can significantly increase the value of a luxury item, whether it's art, a classic car, or a watch, and serves as proof of authenticity.
Are luxury goods liquid assets?
In general, luxury goods are less liquid than, for example, stocks. Selling them can take time, as often a specific group of buyers needs to be targeted. However, for some highly sought-after pieces, sales can happen quickly.
What role does sustainability play in luxury investments?
Sustainability is becoming increasingly important even in the luxury segment. Customers are paying more attention to production conditions and the origin of materials. In the long term, sustainably produced luxury goods could experience higher value stability or appreciation.
