almost 4 years ago • 2 mins
The $2 billion sneaker resale market has fallen on tough times as the economic effects of coronavirus leave consumers more strapped than a pair of Reeboks. But truly fresh kicks are still outpacing the stock market... 👟
High-end sneakers – the vast majority of them made by Nike – can command thousands of dollars on the secondary market. That’s not down to diamonds on the soles, mind you: some are simply stylish, in-demand designs, while others may be super scarce. As our Weird & Wacky Investments Pack posits, that can translate into rising values over time.
But some sneaker investors are now on the back foot. According to specialist resale platforms, 60% of the most popular shoes have seen prices fall in recent weeks, with a pair of Off-White x Air Jordan 5s – one of the biggest releases of 2020 – now commanding less than half what they did in late February.
Coronavirus uncertainty may be making buyers warier of big purchases – and sellers more willing to part with their prized pumps for less. Still, with some ecommerce operations now shuttered and several major sneaker drops getting postponed – including six Air Jordans – there’s a risk “liquidity” issues will send prices swinging more wildly in future 😿
The secondary market for sneakers isn’t the only one close to running on empty. Private equity could soon be in for a shock as less appetite for debt leaves unlisted company shares potentially worth a lot less than their owners claim.
Still, sneakers – especially truly rare marques with a “timeless appeal” to collectors – may be a better bet than shares after all. Marketplace StockX saw the value of its entire inventory decline 4% in March, while US stocks fell 15%. And at $640, the Off-White x Air Jordan 5s are still selling for three times what they initially retailed for two months ago… 😮
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