Most people I know of who buy luxury watches or handbags say they’re a good store of value and can fetch a high resale price in the future. If the market mostly consists of people who buy them for the sole purpose of reselling, wouldn’t that make it a purely speculatively priced item, akin to crypto? How has the luxury market not collapsed?
In: Economics
One of the flaws in this argument is that people look to previous price increases of brands which are currently very much in fashion. In their previous days they were less popular and there are consequently not many vintage items around for sale. If they’re now in fashion and huge numbers of people own them, then it’s unlikely they’ll hold value into the future, especially if the strength of the brand falls.
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