Why Sneakers Are A Great Investment
Why Sneakers Are A Great Investment
The main purpose of investing your money is to see a higher return somewhere down the line. When it comes to making an investment, most people think of the share market, real estate or a business opportunity. Very few people consider the investment opportunity that comes with sneakers. Before you start giggling at the thought of a pair of shoes being a sound investment, think about collectors and how much they are prepared to pay to have find the crown in their collection.
Sneakerheads are constantly scouring the internet in search of the next hit. They understand the value of a good pair of sneakers to add to their collection and you too will think a little differently when we explain why sneakers are a great investment.
The Resell Value of Sneakers Rarely Goes Down
Obviously, we’re not talking about those mass-produced sneakers that have seen millions of pair sold all over the world. We’re looking at sneakers that are either rare or vintage. These sneakers are usually incredibly old or the manufacturers only made a handful of pairs. Sneakerheads will always be keeping tabs on some of these sneakers in the hopes of grabbing them when they are next available to be bought. When they do hit the sales and actions again you can be sure that the seller will get more for them then he or she originally paid for them.
Limited Or Special Edition
From time to time, manufacturers will release a limited edition or special edition sneaker. Limited edition may mean only a handful of a single type of sneaker will be made. In some cases, a special edition pair may be made to commemorate a special event or as a tribute to an athlete. These sneakers will always be sold for a high price and you can be certain you’ll always get your money back if you ever resell. Be careful though, not every pair of sneakers that carry the label “Limited Edition” are worth investing in. If in doubt, walk away. Sneakerheads know the difference between a valuable limited-edition pair of sneakers and a not so valuable pair.
First Releases Are Always Sought After
Think of the very first Converse Sneakers ever made. They were simple sneakers worn mainly by basketball players. This brand has come a long way over the years but those first Converse sneakers are worth a pretty penny today. So too are the first sneakers that are made from any new edition. As an example, the first Air Jordan’s by Nike are going to fetch a much higher price than a pair of Air Jordan’s made in the last few years. The same goes with every first release and if you have a pair of these in your closet, even worth they will be worth quite a lot of money.
Invest In A Complete Collection
A complete collection of anything is always going to be worth more than a few pieces and sneakers are no different in that regard. As an example, you may start your collection with Adidas Originals. Gradually collect the first release of any particular model and once you have the entire collection you are literally sitting on a gold mine. A complete collection can be worth thousands, if not millions of dollars. Sure, it will cost you a small fortune to put a complete collection together, but once you have all the sneakers in a particular set, you will literally be able to name your price when it comes to reselling them.
The Celebrity Factor
Did you know the Single Nike MAG from 1989 that Michael J Fox wore in Back to The Future II sold for nearly USD $100,000? Or that Michael Jordan’s Game-Worn Converse Fastbreak’s sold for almost double that? The celebrity factor can have a huge impact on the cost of a pair of sneakers and collectors will sell their right arm to grab something that no one else in the world with have. If you are lucky enough to have a pair of sneakers that is so iconic and unique, you could ask for a crazy price. Who’d have thought a pair of old worn shoes could be so valuable?
The shoes don’t even be worn to command these over the top prices. In some cases, all they need to do is collaborate with a manufacturer to produce a sneaker and add their name to it. Some of these names include Kanye West, Eminem, DJ Khaled or Michael Jordan. The manufacturers like to keep the number of these sneakers to a limited edition and this will further drive up the price.
Resell Is Driven By Demand
The reality is that sneakers aren’t all that valuable when you look at their face value. The reason why some sneakers cost so much more than others in terms of investment is demand. If you have a pair of rare sneakers, they could be worth $20.00 or a few hundred thousand dollars. You’ve probably heard the saying, “An item is only worth the amount someone is prepared to pay for it”. With that in mind, you can blame obsessive sneakerheads for driving up the prices of investment worthy sneakers. If they have the desire and the bank account and you have that one pair of special sneakers all the sneakerheads are looking for, you could literally name your price.
Even if you don’t intend on selling your sneaker collection any time soon, they will still hold their value for you while they are in your possession. Sneakerheads love to show off their collection and enjoy looking at them as well. Unlike an investment in the share markets where you never actually see your investment, sneakers you have invested in are a tangible asset that you can look at every day until it’s time to sell.
Before you rush out and start your own collection of sneakers make sure you do your homework. Sneaker sellers are often going to try and offload shoes that may sound valuable, but in reality, may not be worth much at all. The last thing you want to do is part with thousands of dollars on sneakers that are only worth a couple of hundred.