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Driving Forces Behind the Surging Luxury Goods Market Amidst Global Economic Downturn - Sotheby's

OGP | Collectors' Recommendations

Aug 30, 2023

Despite the global economic downturn, the rise in the luxury goods market can be attributed to their role as a safe haven asset, uniqueness and rarity, emerging market demand, and the appeal of auction events. These factors collectively contribute to the investment value of luxury items.

This report “Precious Stones, Rare Watches and Top Vintages Power Record-Breaking $144M Luxury Auctions” summarizes Sotheby's most valuable Luxury Week held in New York City, where two precious stones set auction records by selling for $38.4 million each. The Luxury Week featured a wide range of luxury items, including watches, handbags, wines, spirits, and more, with total sales reaching $144 million. Despite the global economic downturn, luxury items are considered a form of investment, especially in uncertain economic times. Their value tends to either hold or appreciate, making them a relatively safe investment choice. Additionally, the uniqueness and rarity of certain luxury items, often produced in limited quantities, contribute to their appeal among collectors and investors. Despite the economic challenges, there is still strong demand for luxury goods, particularly in emerging markets. This robust demand has been a driving force behind the growth of the luxury market.

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