Strategic Acquisitions in Luxury Collectibles: An Expert Perspective from Adam Abraham of Love Luxury

Strategic Acquisitions in Luxury Collectibles: An Expert Perspective from Adam Abraham of Love Luxury

Collecting luxury items, whether it's watches, handbags, or other collectibles, is both an art and a science. For those who are passionate about collecting and also looking to make a profit, understanding the nuances of the market is crucial. We sat down with Adam Abraham, the founder of Love Luxury, to gain insights into the world of luxury collecting.

Dealers vs. Auction Houses: Which is Better?

When deciding between buying and selling with a dealer or an auction house, there are several factors to consider. "An auction is always a gamble," says Abraham. While auctions can sometimes offer massive payoffs, they require patience. "It could take months to get the piece you want at a price that suits you," he adds. On the other hand, dealing with a dealer offers the chance to inspect a product thoroughly and the flexibility to negotiate. This often results in a better deal in the long run.

The Rising Stars: Collectibles to Watch

This year, the Patek Philippe Nautilus model stands out as a significant investment piece. "You can make a significant amount of money immediately after purchase on the secondary market if you can get them from the retailer," Abraham notes. If the Nautilus model gets discontinued, its value is likely to skyrocket.

Patek Philippe. An Fine Stainless Steel Automatic Wristwatch with Date and Bracelet. Source - Christie's.

When it comes to handbags, Hermès and Chanel bags reign supreme. The timeless models, such as the Birkin and Kelly from Hermès and Chanel's classic flaps, are guaranteed to appreciate in value. "Every year they’re guaranteed to increase at retail price, which in turn pushes up the price of the pre-loved market," Abraham explains. Once these bags exceed the 20-year mark, their value gets a significant boost.

A BLACK LAMBSKIN LEATHER JUMBO CLASSIC SINGLE FLAP BAG WITH GOLD HARDWARE CHANEL, 2008 Source - Christie's

Beyond Brands: Models that Hold Value

While brands like Chanel, Hermès, and Rolex are undoubtedly prestigious, it's the classic and vintage models from these brands that hold their value exceptionally well and are always in demand.

Buying for Passion and Profit: A Balanced Approach

For collectors who are driven by passion but also have an eye on profit, Abraham has some advice. He emphasizes the importance of third-party authentication certificates. "That is your guarantee that the product is genuine," he says. A 'full set', which includes all original packaging and receipt, can significantly influence the resale value.

Condition is paramount. "Even the smallest scratch or stain can devalue a product by £1000’s," warns Abraham. If you're buying primarily for investment, resist the temptation to use the item. A product that's 'box fresh' is highly sought after and can fetch a much higher price.

When it comes to bags, factors like size, skin, and color can greatly influence resale value. While smaller bags are currently trending and selling for more, Abraham advises against chasing trends for investment purposes. "Go for classic styles and colors," he recommends.

Conclusion

In the intricate realm of luxury collectibles, making informed decisions is paramount. As highlighted by Adam Abraham's insights, the balance between passion and profit is delicate but achievable. Authenticity, patience, and strategic selection are the cornerstones of a successful investment in this space. As the market continues to evolve, collectors equipped with expert knowledge and a discerning eye will be best positioned to reap both emotional and financial rewards from their acquisitions.

Read more