The Vintage Advantage: Collecting Luxury Goods

Vintage, or pre-owned, luxury goods—including rare watches, handbags, and couture clothing—are surging in popularity. In 2024, the term “vintage,” which generally refers to items that are at least 20 years old but not yet antique, was searched over 1,200 times per minute on eBay, with nearly 40% of all clothing, shoes, and accessories sold listed as pre-owned. According to Bain & Company, the secondhand luxury market expanded to approximately €48 billion in 2024, with a 7% year-over-year increase, outpacing the growth of new luxury goods.

Consumers are increasingly drawn to pre-loved items, viewing them as a reflection of today’s values: environmentally conscious, unique in style, and aligned with the “old money” aesthetic of understated luxury. There are financial considerations as well: In addition to being sustainable, vintage classics are often less expensive than newer versions, they are exempt from tariffs, and some purchases may even appreciate in value. This shift is especially pronounced among younger generations, who are willing to pay a premium for quality vintage goods that blend timeless style with modern sensibility.

Beyond the vintage “It” bag: Style, story, and staying power

Whether it’s the Lady Dior, famously carried by Princess Diana, or the Gucci Constance, used by Jacqueline Kennedy Onassis to shield herself from paparazzi, fans of fashion have long prized iconic handbags. It’s no surprise, then, that collectible handbags have become a standout category in the growing vintage market. The popularity of resale platforms like The RealReal, Rebag, and Vestiaire Collective has further increased inventory and made it easier to both buy and sell.

Exceptional vintage bags from brands like Hermès, Chanel, and Louis Vuitton serve not only as status symbols but also as tangible assets that can appreciate in value. According to CNBC, if you had invested in a Hermès Birkin bag in 1980 and held it through 2024, your return would have been approximately 14.7% annually—a figure that compares favorably with the S&P 500’s 12.7% over the same period. In fact, the original Hermès Birkin, designed for Jane Birkin, was recently sold for €8.6 million at Sotheby’s Paris, shattering auction records. As reported in The New York Times, luxury e-commerce site 1stDibs reported a 484% year-over-year jump in Birkin bag searches in early 2025, with a 5% increase following Sotheby’s June auction announcement. As consumers, especially younger buyers, increasingly seek items that are both distinctive and enduring, rare and well-preserved classic handbags are being embraced as alternative stores of value.

Key factors that influence the value of vintage handbags:

• Rarity and exclusivity, especially limited editions or discontinued models
• Timelessness of design, as “classic” shapes tend to age well
• Craftsmanship and materials that feature high-quality construction, rare leathers like crocodile or ostrich, and handmade details
• Condition, which should be mint or near-mint for investment-grade pieces

Before liquidating a portfolio of equities to build a handbag collection, it’s important to acknowledge some caveats: For every bag that retains or grows in value, there are dozens of “It” bags that do not. Tastes change, and desirability can wane. And to be considered a true investment, a bag must be kept in exceptional condition, which often means minimal to no use.

In practice, few collectors purchase a spectacular handbag and leave it untouched in a vault for 40-plus years. Hence, the best advice is to buy the bags you love. If you hope to pass them down, choose timeless styles, care for them well, and enjoy them in the meantime.

Timeless threads: Investing in vintage couture

While fast fashion continues to dominate headlines, vintage couture is quietly emerging as a new frontier for fashion collectors and investors. Once admired primarily for its beauty and historical relevance, vintage designer clothing—particularly haute couture—has entered the conversation as a store of value.

According to ThredUp’s 2024 Resale Report, the global secondhand apparel market is projected to reach $3 billion by 2028, with designer garments among the highest-performing categories. And in recent years, auction houses have reported record-setting sales. For example, a Jacques Azagury gown once worn by Princess Diana fetched $1.14 million in 2023, far exceeding estimates. Unlike ready-to-wear, couture fashion pieces are handmade and typically produced in extremely limited quantities.

Key factors that influence the value of vintage couture pieces:

• Designer reputation and era
• Provenance, especially previous ownership by celebrities, fashion icons, or historic collections
• Rarity and condition, such as intact linings, original labels, and no alterations
• Cultural or archival relevance, whether pieces are representative of a designer’s creative peak or part of major fashion moments

Vintage couture pieces that tend to hold value include classic Chanel jackets, Dior “New Look” dresses, rare Alexander McQueen or John Galliano designs, and original Yves Saint Laurent Rive Gauche collections. As in fine art, a compelling story adds value. A late-1950s Dior gown, for example, will command far more if it can be traced to a prominent debutante or socialite, or if it appeared in a major fashion editorial.

Costs and care of vintage couture

While vintage couture can appreciate in value, it’s not without its costs. For truly valuable pieces, climate-controlled storage, conservation services, and specialty insurance are essential. Numbers vary greatly depending on materials and garment construction, but, according to Brennan Lowery of UOVO, a firm that provides specialized care for art, fashion, and wine, collectors might expect to pay $100 to $500 per garment per year for proper archival storage and $250 to over $1,000 for conservation or professional restoration.

Past perfect: The enduring appeal of vintage watches

Rare vintage watches offer more than precision—they embody heritage, artistry, and a deep sense of individuality. Their scarcity, quiet elegance, and association with a more refined era lend them an “old money” allure, and their appeal has only grown as rising precious metal prices and looming tariffs make new gold and platinum models increasingly costly. Vintage watches provide not just aesthetic charm and mechanical finesse, but also a smart hedge: You’re acquiring a storied asset rather than taking on full exposure to today’s sharp market fluctuations.

A year ago, according to Bloomberg, luxury watchmakers were purchasing gold at around $2,500 per troy ounce. As of this writing, Bloomberg reports that figure has surged to approximately $3,350. For brands that rely heavily on gold timepieces, this dramatic rise presents a tough dilemma: pass the added cost on to consumers, reduce gold content, or pivot to alternative materials. Some, like Cartier, have taken a more cautious route—pulling select high-end gold models from their inventories altogether until there’s more certainty.

Unlike vintage “It” bags and couture clothing, vintage watches follow a more nuanced set of rules. Here, craftsmanship, mechanical integrity, and subtle details like patina and provenance can make all the difference.

Key factors that influence the value of vintage watches:

• Brand and model, with iconic brands like Rolex and Patek Philippe consistently commanding the highest prices
• Condition, such as well-preserved watches with original finishes
• Rarity, which includes limited production runs, rare dial variations, and unusual complications
• Provenance, such as documented history, famous owners, or original boxes and papers
• Market trends

Investing in vintage and storied style

In the end, whether it’s a storied vintage watch, an iconic handbag, or a piece of couture fashion with rich provenance, vintage luxury goods offer something increasingly rare in today’s fast-paced world: authenticity, enduring craftsmanship, and a tangible link to history. Their appeal isn’t solely about investment potential or prestige—it’s about owning objects that tell stories, hold value, and quietly transcend trends. For collectors and enthusiasts alike, that’s the ultimate reward.

If you are interested in understanding unique tax and financial planning considerations of investing in vintage pieces, contact your Cerity Partners advisor or request an introduction.