Gone are when people relied on mutual funds and stock markets to make money and opt for quicker returns. It’s natural for humans to crave variety, and this is what the market follows too. The dominance of cryptocurrencies in the financial industry, particularly among the young, is a perfect example. Another new and emerging trend in Australia is the rise in investments in rare sneakers by young adults and old-time collectors alike.
How Lucrative Is Putting Money In A Good Pair Of Kicks?
Sneaker investments and auctions started as a pastime where auctioneers and sneakerheads would band together and sell, exchange or buy rare sneakers and expensive kicks. Thanks to social media and other powerful internet tools, this snowballed into a big market that has the potential of higher returns compared to most standard investments. Take a look at some of the reasons why the sneaker culture is here to stay:
- It’s not boring or technical like stock trading or other stock market ventures in Australia. As a new and simple market investment, sneaker sales are more attractive to the younger generation who don’t need to learn and relearn all the boring financial terms and the likes. In addition, sneaker prices aren’t affected by the intense swings in the market, and people will always have more control over the costs of their sneaker models.
- Sneaker sales represent money and a culture of sports and games like basketball and football. Unlike most stocks in the market driven by regular changes, sneaker sales are always driven by passion. Consequently, the price of a good pair of kicks is usually the price one is willing to pay.
- It is an attractive venture for the younger demographic as it connects communities and weaves stories around great products. This is how the sneaker culture grows prominent in Australia.
Sneaker sales are often driven by the emotional stories behind them, just like the great players who used them to dominate the field of play. And people are willing to pay a great deal to be a part of this story. Although materials don’t play many roles here, the one thing that fixes the price on a higher ceiling is the perceived scarcity.
Things To Be Wary Of When In The Sneaker Business:
The onset of the global pandemic affected the sales of sneakers, but the market is reeling back from its impact. Here are some things to consider regarding sneaker investments to make sure that the money is well spent:
- As mentioned before, scarcity plays a great deal, but most of the rare sneakers in the Australian market are based on a “perceived” notion of scarcity. So unless there is a high probability that the sneakers will get sold off immediately.
- Don’t always follow the hype but keep a close eye on the latest trends in the market. Hype dies down permanently. So, what used to be the hottest trend may not be as enticing for demanding buyers as time progresses. But then again, don’t forget the power of emotion and art, as these two factors are the main reasons why the sneaker culture exists in Australia in the first place.
- Be wary of counterfeits being sold across the country, and many new investors are getting duped by this. Although Australia is doing its best to cut down on fake shoes and protect the interests of the investors, it’s better to keep a closer eye on the products bought.
- sneakers have more returns than the most popular stocks. However, it doesn’t mean one should be careless when investing money into them. Instead, create a budget, research the market and always take calculated risks accordingly.
