I Asked ChatGPT Which Luxury Purchases Actually Appreciate in Value — Can You Afford Any?
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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While the average American doesn’t have the funds to buy luxury items for status purposes, there are some luxury purchases that appreciate in value, making them potentially good investments.
Before you run out and buy yourself a designer outfit or a piece of art, I asked ChatGPT to help me understand which kinds of luxury purchases appreciate enough to be worth your money, and to see which the average middle-class American can actually afford.
1. Designer Handbags
One of the strongest luxury-asset categories, surprisingly, is designer handbags, ChatGPT said. But not just any bag — if you want something with appreciation and thus resale value, you’ll need to think brands like Hermès, Louis Vuitton and Chanel.
To put it in perspective, one Hermès Jane Birkin bag recently sold for over $10.1 million at Sotheby’s. That is the exception, not the rule, however.
Of course, to even purchase one of these handbags in the first place often requires a significant output of cash, so could the average, middle-class American afford one? Possibly, if you’re willing to part with money you have earmarked for other things like retirement, buying a home or an emergency fund. The “starter” Birkin bags come in around $12,000 to $15,000 each. For the average middle-class American, this is probably out of reach, though not impossible, to purchase.
2. High-End Watches
Another luxury category likely to appreciate over time is the watch. Luxury watches from brands like Rolex, Patek Philippe and Audemars Piguet can retain their value and even grow in value over time.
ChatGPT drew on data from Forbes and other experts that found that some luxury brand watches can grow significantly in value, but you really need to know your stuff. The AI explained that watches often require collector-level knowledge, proper servicing and proof of their provenance. And like most luxury items, not all models appreciate equally. A Patek Phillipe Nautilus can sell for anywhere between $110,000 and $300,000, a price that puts it pretty out of reach for the average middle-class American. However, a Rolex Oyster Perpetual is a much easier place to start, with an entry price of around $6,000. It’s not cheap, but within the range of a middle-class income if properly budgeted for.
3. Fine Art and Collectibles
Items like limited-edition art, rare wines, jewelry, vintage cars and other high-end collectibles show up as “luxury investment” assets, ChatGPT said. With art, however, a lot of factors must come into play, so simply buying a beautiful painting from a hot new artist is no guarantee of appreciation, ChatGPT warned.
To be worth something, art and other collectibles often need certificates of authenticity and or provenance, a record of sales from a gallery or auction house, prior ownership by notable collectors and so on.
Some collectibles, like jewelry, coins, whisky or wine may be easier to evaluate and apply a price point to. It’s hard to find an entry point for any of these items, which vary widely, but it is possible.
4. Luxury Jewelry and High-Quality Gems
Iconic jewelry pieces and rare gemstones from top brands can hold or increase value. Think Cartier, Tiffany & Co. and Harry Winston. However, appreciation depends on factors like provenance, gemstone quality, limited production and overall condition, ChatGPT said. Additionally, this category is far from guaranteed: Resale demand varies widely and pieces with wear, repairs or unclear documentation often lose value rather than gaining it.
An entry piece of jewelry with a good chance of appreciation, so long as it stays in excellent condition, is the Cartier Love Bracelet, which ChatGPT called, “A branded, iconic bracelet with broad recognition.” The white gold version retails for around $7,100. While still expensive, a middle-class earner could potentially buy one if they saved up.
5. Luxury Cars (Classic and Rare Models)
Though most cars depreciate sharply, certain rare classic and luxury models have strong historical appreciation. One example ChatGPT gave is the Ferrari 250 GTO, which has gone from modest values decades ago to tens of millions now.
While true collectible supercars cost millions, for the serious collector you can find “entry-level” luxury cars with appreciation potential in the $50,000 to $150,000 range if you pick carefully, ChatGPT said. That puts these well out of reach for the average middle-class American.
Factors that contribute to strong appreciation include maintenance, storage, authenticity and rarity. In fact, typical luxury cars do not appreciate.
Buyer Beware
Regardless of the potential for appreciation, not all luxury items appreciate; many depreciate or hold value only if condition/rarity is superb, ChatGPT pointed out. So many factors must coalesce for the value to increase, such as brand heritage, limited supply, timeless design condition and provenance.
Additionally, many of these items come with storage and maintenance costs, and it can be difficult to identify authentic from fake. Spending on luxury is not something the average middle-class American should count on.
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