Luxury Assets

Luxury Assets In a Nutshell
While luxury items are often seen as extravagant indulgences, they can also serve as wise financial investments, offering potential returns comparable to more traditional investment avenues. In this article, we’ll explore how luxury items can be an attractive and profitable addition to your investment portfolio.
Overview
Prudent financial investments

Investments without correlation to the financial markets

Diversified portfolios often incorporate luxury assets because they typically demonstrate little to no correlation with financial markets. Luxury assets have tended to perform well and provided stable returns during periods of inflation, often outperforming financial assets. Although it must be noted that past perform is not an indicator for future returns.

However, luxury assets generally have lower liquidity compared to financial assets, as their sale usually requires third-party mediation, resulting in commissions. Additionally, maintaining the safety and condition of these assets entails higher carrying costs, including expenses for storage and insurance. It’s essential to check these factors before purchasing.

When acquiring luxury assets, it’s wise to seek the best available price and understand the associated fees/commissions with the chosen vendor.

Luxury Assets generally have lower liquidity compared to financial assets, as their sale often requires facilitation, which is rarely immediate.

This sale is typically conducted by a third party who charges a commission. To ensure the preservation of these assets’ safety and condition, they also incur higher carrying costs such as storage and insurance. This should be a crucial factor to consider before purchasing.

When purchasing any of these assets, it’s essential to ensure you’re getting the best price possible and understand the fees/commissions you’ll be paying with that particular vendor.