THE JOURNAL
Illustration by Mr Calum Heath
For those of us who don’t make a living on Wall Street, the thought of getting into investing can be daunting. First, there’s all the jargon. Then, there’s the fear that it could all crumble to dust (RIP NFTs).
As fashion-loving folk, we’ll be the first to admit that our financial interests have traditionally been more in the outgoings than the incomings. You’ll likely find us browsing the What’s New section of MR PORTER, not the S&P 500 – which is why you shouldn’t come to us for financial advice. But what if putting a hefty down payment on, say, that vintage Cartier watch you’ve been eyeing up or the SAINT LAURENT bag that’s currently lingering in your basket might actually be a financially savvy move?
That’s the crux of what some are calling “magpie investing” – speculating on physical objects and luxury goods rather than stocks and shares. According to recent research, one in 10 adults are doing just that, sinking an average of £40,000 into assets ranging from classic cars to Pokémon cards in the hope of a return. Nothing is a certainty, but at least you won’t ever have to learn what a derivative is.
If you’re thinking of putting your money into something shiny, take heed: not all items are made equal. With luxury goods, brand, condition and year of production are all factors that can determine rising or declining value – not to mention the temperamental winds of the market. Predicting what will blow up in 10 years’ time is a bit of a lottery and a degree of risk is inevitable. But to give us a steer, we’ve consulted some of the top luxury connoisseurs on what they think are the wisest investments you can make today.
From fine wines to premium leather goods, below is our expert-approved starter guide to getting the most from your money and building up a handsome private collection in the process. And while we can’t guarantee financial returns, cost-per-wear investment comes priced in.
01. Watches
Perhaps you’ve heard the lore around vintage watches that ended up making a killing – the most famous being a Jaeger-LeCoultre Deep Sea that was snaffled from a charity shop for a few dollars and ended up selling for about $35,000. Even MR PORTER’s Senior Watch Editor Mr Chris Hall has a tale of his own mini jackpot. “I have a 1970s Longines that I bought on eBay for just over £100 that’s worth about £1,200,” he says. Admittedly, impressive returns are rare – hence why the tales are so legendary. “What they have in common is luck, really,” Hall says. “No one here set out trying to get rich.”
But if you are watch-shopping with an eye to the future, he does have some words of wisdom. “Historically, there has been no safer bet than Rolex,” he says. “It’s so bankable because it’s built a lasting brand and earnt a reputation for quality. It is ubiquitous, has been a constant in the marketplace for decades and produces a huge number of watches. In that sense, it’s the closest thing to a knowable commodity you can find in the watch world.”
Equally, Audemars Piguet and Patek Philippe tend to hold value well, as do Cartier and Jaeger-LeCoultre. And that’s before we even get into models, eras, etc. Right now, it’s all about the 1980s and 1990s. “Models from IWC Schaffhausen, AP, Blancpain, Ebel, TAG Heuer and Breguet of that era are being reappraised in a favourable light,” Hall says.
As for his other predictions? “Piaget is about to have a big moment, following a year and a half of hype around vintage and neo-vintage Cartier and a return to dressy, glamorous, elegant styles,” Hall says. “Within that same movement, hard-stone dial Rolexes, 1970s and 1980s Datejusts, Day-Dates could also rise.”
Again, the more you get involved in the horology world, the better your chances of making a smart purchase. “It pays to be closely watching what’s being released, what’s selling at auction, and what’s been overlooked for a while,” Hall says.
It goes without saying to proceed with caution before dropping a hefty sum on a timepiece. “Don’t go shopping at big auction houses unless you are a multimillionaire with plenty of patience,” Hall says. “It is very unlikely you’ll bag a bargain with the eyes of the collecting world on a sale. And don’t buy a watch that looks too good, or too cheap to be true, because it will definitely have something wrong with it.”
Verification is crucial, of course, so stick to trusted sellers only (hint, hint, MR PORTER). And always prioritise condition over budget and availability. “If you’ve decided you want a certain watch, figure out how much a good example should cost and buy the best you can find,” Hall says. “It will pay off – or at least lose less.”
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02. Jewellery
Smart folks have been investing in gold since long before the stock market was conceived. However, these days, keeping it stashed in the basement in bar form isn’t the only way to get bang for your buck. “Fine jewellery is a great investment as the raw materials used often increase in value as time goes on,” says Mr Maxim de Turckheim, Senior Buyer at MR PORTER. “But it’s important to make sure you buy well and always double check what quality you are purchasing, which is part of the vetting process we do before allowing a new brand on the site.”
So, what exactly holds its value well? “Anything with gold is a very safe investment, and the more classic the style the better,” de Turckheim says. “It’s much easier to sell on a chunky Cuban link in 18k gold from brands like SHAY, for example, than something more ‘out there’.”
In terms of brands, look for those that are hard to get or scarce: “Buccellati, Cartier, Greg Yuna, Foundrae are great investments as they are not widely available, so customers are willing to pay a premium to get their hands on a piece,” says de Turckheim.
And if there’s anything you should be eyeing up right now, according to de Turckheim, it’s emeralds. “A gorgeous single-stone signet ring, for example,” he says. “Emeralds have surged in popularity and it’s the strongest-selling coloured stone on MR PORTER. A well-sourced, good-quality emerald now reaches the same price as diamonds, so it’s definitely a safe bet long term as supply gets scarcer.”
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03. Clothing and accessories
“Investment piece” is a term that’s applied rather liberally in fashion, but as it happens ROI can translate to more than cost-per-wear. “SAINT LAURENT leather jackets, Gucci loafers, TOM FORD cashmere sweaters, Brunello Cuccinelli shirts, the Bottega Veneta intrecciato leather messenger bag, Moncler down jackets – all of those are doing especially well,” says Ms Stephanie Crespin, founder and CEO of Reflaunt, which powers MR PORTER’s RESELL service. “Opting for brands that prioritise high-quality materials tends to ensure that your purchases maintain their value over time. It’s the emphasis on durability and craftsmanship that often contributes to the longevity of an item’s value. That transcends the influence of brand names alone.”
Also think rarity – limited-edition pieces and collabs will be more sought-after. As are those from iconic designer eras: Mr Hedi Slimane-era Dior, Mr Tom Ford-era Gucci and so forth. (Might Mr Jonathan Anderson’s LOEWE be next?)
“Buying vintage from the great designers remains the safest way to ensure the pieces in your wardrobe will maintain their value,” says Ms Lucy Bishop, handbags and fashion specialist at Sotheby’s. “In recent years, there’s been a huge surge in interest from buyers for pieces from the 1990s by Alexander McQueen, John Galliano and Vivienne Westwood.”
As for the modern-day icons? “In terms of contemporary luxury menswear, the groundbreaking work of Virgil Abloh during his tenure at Off-White and Louis Vuitton is highly sought-after by collectors, and I expect will – quite rightly – remain so,” Bishop says. And if you’re looking for the next iconic accessory? “The most recent bag to be touted as the ‘next Birkin’ is the Margaux by The Row.”
The market for vintage men’s bags may have some way to go to match the scale of that for women’s, Crespin reports that the sector is “gaining significant traction”. “Some bags for men, from brands such as Prada and Louis Vuitton, are demonstrating remarkably higher demand than womenswear bags. This trend is confirming the growing popularity of bags within these luxury labels on the RESELL platform.”
Elsewhere, hype-sneaker drops will always attract the profit-minded – and have even birthed their own mini stock market. Wales Bonner x adidas Sambas have been known to go for double their retail price, while some early Yeezys and Off-White x Nike collabs can go into the five-figure mark.
If you’re in the market for a long-term investment, however, don’t just go for buzz. And for maximum value post-purchase, be sure to keep your papers in order. “In the case of iconic pieces, proof of purchase is a value add,” Crespin says. “When it comes to bags, especially, having proof of authenticity is critical. Original shoe boxes, dust bags and receipts can contribute to the overall appeal and valuation of the item.”
Condition is key, too: “You want to have items with minimal signs of wear,” Crespin says.
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04. Wine and whisky
What makes fine wine such a brilliant investment? “They’re impossible to replicate,” says Ms Barbara Drew, a master of wine at centuries-old merchant Berry Bros. & Rudd. “Every vintage of wine will taste a little different, and once all the bottles have sold that’s it.”
It’s a similar case for whisky. “It doesn’t experience quite the same variations from year to year, but you can still taste the evolution of the distillery,” Drew says. “And once it’s bottled, it’s almost in a time capsule – it barely changes, which means you can keep it almost indefinitely.”
Good news for those who don’t know their chardonnay from their shiraz: there’s no need to be a connoisseur to begin building an impressive collection – although honing your knowledge will certainly help. “Ask lots of questions,” Drew says. “Attend tastings with an expert, talk to the sommelier when you’re in a restaurant – anyone working in the wine and spirits industry is immensely passionate about these products and always happy to share their knowledge.”
And if you’re serious about investing, set up a “cellar plan” at Berry Bros. & Rudd, where you’ll be assigned an expert account manager, and can buy and sell rare wines on their online platform, BBX. (More interesting than a pension scheme, in our view.)
As for what’s hot right now? “If I could go back, I’d certainly invest in some of the classics – really old bottlings of whisky and classified growth bordeaux,” Drew says. “First growths like Mouton-Rothschild and Latour are always extremely highly sought-after, year after year… [But] the main piece of advice I would give my younger self would be to spend a little bit more, as that extra few pounds makes a huge difference to the calibre of bottles you can add to your cellar – and further down the line, when they’re still ageing magnificently, you’ll be grateful you did.”
Ultimately, Drew’s resounding advice is to be driven by your own tastes and passion. “Do remember, though, everyone is unique – if you taste something and don’t like it, that is fine. It’s all part of narrowing down to what you do like and building your perfect collection.”