Jordan returns vs the stock market

Sneakerhead Economics: Shoes as an Investment

Get your Free Preview of the Hypemaster Playbook Now!

Insider Sneaker Info Below

I agree to have my personal information transfered to AWeber ( more information )

Privacy guaranteed, you can unsubscribe at any time.






Get in on insider sneaker info, starting with a FREE Preview of the 5 part Hypemaster Playbook!

Start Flipping Shoes For $ Today !

*Important note: Although the statistics are real, this article is not meant to be taken as direct investment advice! Always act on your own decisions and consult authorities when investing any sum of money*

This Ted Talk by Josh Luber, the creator of Campless (now called StockX) brings up an interesting proposal of sneakers as an investment.

Historically, the stock market returns 9% yearly. For those who want to see these kind of historically safe and reliable numbers as a return on their hard earned money, stashing your money away in something like a Vanguard index fund is an attractive opportunity.

However, this is a boring grandpa version of investing.

For newer generations like millenials and the upcoming Gen Z’s, a combination of a lack of trust in investments heavily based on national economical performance in addition to a want for control and transparency over investment vehicles is causing these groups to look for alternatives.

With the entrepreneurial movement in full swing right now, many young people are being told that the best investment is in themselves. One of the best ways to invest in yourself as a young professional or a college student is starting your own sneaker resale business. This is the kind of investment that you can control and that can pay out in dividends much greater than the historic 9% per year.

Active investments like selling shoes are really cool because you learn skills that transfer into other business ventures which may mean experience you can put on a resume for a future job, or priceless skills like customer service and business building as your first taste in entrepreneurship.

To start a business selling sneakers is the ultimate self investment for many of those who want to take the wheel of their financial future. However, not only is plenty of risk is involved in such ventures, a multitude of paths with unclear directions makes it hard to know where to start or when to stop and pivot into other ventures.

A lot of risky or boring opportunities exist, but there’s one that seems to check all boxes as the ultimate investment opportunity for young people today. Imagine that you can consume the goods that you want to and get paid doing it. That sounds awesome doesn’t it!

follow us on instagram

Well it can be done with investments in sneakers.

To see a return of 50% or even 100% on money invested in sneakers or streetwear is not only common, it’s often the norm for those participating in this fun game.

As stated in this article by streetwear news authority Complex, you could would have gotten a better 4 year return having bought a single pair of Jordan 3 Black Cements than if you had purchased stock in one of the best performing companies on the market, Apple, and more than double that of the same return of the S&P 500, which as a representative of the performance of the top 500 performing American companies is a good indicator of the overall economy.

Air Jordan 3 black cement inveestment
Who knew a single shoe could beat the return of the America’s top 500 companies

 

Ultimately, a good bit of knowledge will come in to play for those who want to use sneakers and streetwear as an investment vehicle.

You can build the knowledge over time, but posts like this beginner’s guide to selling rare shoes for profit are a good starting point.

One awesome thing to note is that at the time of this writing in January of 2018, there exists another opportunity this year to acquire this exact pair of shoes in this example, the Air Jordan III Black Cement, with an expected return in as soon as one day that is sure to beat the yearly return of the stock market in 2018.

A quick Q&A:

We missed the opportunity for these Air Jordan III’s mentioned in the article. Are there other shoes that I can buy for good returns?

This is just one of many shoes this year in 2018 that can promise immediate returns that will beat the historic stock market yearly returns of an average of about 10%.

Is reselling sneakers illegal?

The sneaker resale market has been around for many years, and although it’s controversial, it’s not illegal, and it’s here to stay. I’d argue that even if it were illegal, reselling brands like Nike Jordan and Adidas Yeezy would remain part of the economy in the same way that selling drugs does. It’s a good thing that it’s legal, since there are many platforms like GOAT, eBay, and StockX that you can invest in and sell sneakers in.

How much can I make on average off of one pair of shoes?

It is common to make returns of 100% and more off of individual pairs of shoe–that is, once you know what shoes to buy and how to acquire them. You can find expert advice in our exclusive, highly reviewed 5 Part Hypemaster Playbook that you can get right here for shoe resale success, whether you already sell shoes and want to sell more, or if you are a total beginner and want to start investing in shoes as a full or part time business.

Are all Jordans worth investing in?

No.

The Jordan brand has spanned far beyond its retro roots that started in 1984, and has since released many lifestyle and fashion shoe models that have no value above their retail price. Shoes like the Jordan Eclipse, Jordan Future, and countless others are not worth buying as an investment. You will lose money if it is your intention to buy them hoping that they’ll go up in price over the next coming years. On the contrary, models like the Nike Hyperadapt and some Flyknits have resale value even though they are not Jordans. This goes back to having the critical knowledge base for buying and selling shoes.

How long do I need to keep the shoes to see a good return?

Some shoes you will see the best return when you sell them immediately around the release day, others like the original Adidas Yeezy Boost have aged well and gone up in value, peaking over the course of 2-3 years after seeing some ups and downs along the way. The Yeezy 750 in February 2015 first sold for around $1500, then dropped below $1000 for a while, and years later now in 2018 is worth record prices of up to $3000 a pair.

You’ll need to watch the market over a long period of time, or study the history to get a good grasp of what shoes are good investments, and how long you should keep them.

~~~

For those who love the potentially pricey hobby of streetwear, strategic purchases as an investment is absolutely worth it, and the best part is that now you can share this article so you can shove the statistics that prove it in the face of any haters! 😛

 

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.