Investing is all about getting a higher ROI over time. In most cases, when people talk about making investments, they automatically think about purchasing real estate, shares, stocks, business etc. Most people don’t even consider investing in sneakers. Now, before you start to laugh, you should consider sneaker collectors and the sheer amount of money that many of them are willing to give in order to add the next perfect pair of sneakers to their growing collection.
There are thousands of sneakerheads online that are always looking for the next pair of sneakers to buy. They completely understand how valuable good sneakers are and you should appreciate this. We will now get into exactly why investing in sneakers is such a great idea.
High Resale Value
Of course, sneaker investing is not about buying the typical mass produced sneakers that are sold worldwide. Instead, we are talking about vintage and rare sneakers. These are the type of sneakers where the manufacturers only made a couple or they are so old that they are no longer being made. There are many sneakerheads who are always looking for these type of sneakers so that they can buy them quickly to add to their collection. Once you buy and resell the right pair of sneakers, you will surely make a lot more money than you originally paid.
Special & Limited Edition Sneakers
Most manufacturers typically create special edition and limited edition sneakers that are only made by the handfuls. You need to keep up to date with sneaker releases to make sure that you don’t miss out. In some cases, a special edition sneaker may be manufactured to celebrate a particular event or even an athlete. These type of sneakers are usually extremely expensive but you’ll surely be able to make a lot more than you spent if you re-sell them at some point. Now, with that said, not all limited edition sneakers should be purchased as an investment. If you’re not sure about a particular pair of sneakers, then don’t buy them. Remember, true sneakerheads will immediately know if a particular limited edition sneakers is valuable or not.
First Release Sneakers Always Have High Demand
To understand this concept, you should recall when the first pair of Converse sneakers were manufactured. Mainly basketball players wore these sneakers. Now, the brand has gotten extremely popular and those first set of Converse sneakers are now worth a lot of money. Basically, the first set of sneakers from any edition are usually quite valuable. For example, the very first Air Jordans that were made by Nike are a lot more expensive in comparison to new Air Jordans that were more recently created. So, if you happen to have a set of first releases in your home, then you can rest assured that they are worth a significant sum.
Buy Complete Collections
When you purchase a complete collection of sneakers, these collections will fetch much higher prices than having random pairs of sneakers. So, for example, you can start your first collection of Adidas Originals. You can start with getting any model (first release) and then keep buying and collecting until you have a full collection. Once the collection is complete, it would be worth many thousands of dollars and even potentially millions! Of course, it will cost you quite a lot in order to buy the entire collection, but it is a great investment. Once the collection is complete, you can easily call any price you want once you’re read to sell.
Celebrities hold a lot of weight, especially when it comes to sneakers. If you’re a fan of Back to the Future II, then you should know that the Single Nike Mag that Michael J Fox wore in that movie was actually sold for a whopping $100,000 USD. The Converse Fastbreak that Michael Jordan wore sold for twice as much. As you can see, once a particular celebrity has worn a particular pair of sneakers, these sneakers become worth hundreds of thousands of dollars. Once you have a unique pair of sneakers that was worn by an iconic celebrity, you can literally ask any price you want for it. Even old and worn out shoes can demand a high value!
In many cases, the sneakers don’t actually need to be worn by celebrities to be worth thousands. In some cases, all the celebrity needs to do is work with a particular manufacturer and put their name behind the sneaker. Some people who have successfully done this include Michael Jordan, Kanye West, DJ Khaled, Eminem and more. In most cases, these celebrity backed sneakers are usually limited edition which causes even more demand and higher prices.
It’s All About The Demand
When you look at a pair of sneakers, most of them aren’t actually expensive to create. The only reason why some sneakers are more expensive than others is because of the sheer demand for them. When you have rare sneakers, a single pair can be sold for $30 or as much as a couple hundred thousand bucks. You’re probably familiar with the phrase that an item can be sold for as much as a single person is willing to pay. Once you have a pair of sneakers that sneakerheads are dying to own, then you can call just about any price you want for them.
You may not want to sell your collection immediately or even soon. However, your sneakers will still retain value once you have them. Many sneakerheads enjoy showing others their collections or just showing them off in general. The great thing about sneakers is that unlike stocks, you can actually see the sneakers you own and it is a very tangible investment. You can look at and enjoy your collection as much as you want until you’re ready to sell them.
With that said, before you go and invest in sneakers, you need to do a lot of research. There are many people who are selling sneakers and they often try to get rid of their sneakers by making them appear to be more valuable than they actually are. You definitely don’t want to get caught in the trap where you end up buying a pair of sneakers for thousands of dollars and then later find out that they are only worth a few hundred dollars.