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Why Do Jewelry And Paintings Outperform Stocks?
When the stock market crashed, I was able to buy an expensive vintage wristwatch from a very well-known brand for half its normal price. The crazy part? Despite selling at a discount, the watch’s previous owner still made a profit.
In fact, he sold this watch for a thousand dollars more than its original retail price.
In the word of jewelry and art, things like this are pretty common.
In 1990, a Rolex Submariner cost about $1,450. That same watch from 1990 now sells for $7,000.
That’s a pretty good return on investment!
Art sees similar returns, with people buying paintings or sculptures and then selling them at a profit sometime later.
Why do things like paintings and watches often outperform the average investor? How does a Rolex or Vacheron Constantin owner turn profit off their luxury purchase, while someone reading investment forums and financial newsletters loses money?
Well, there’s a simple one-word answer that covers both questions: Time.
