When you invest in a big purchase, you’re always going to wonder whether it will hold its value.
At Miltons Diamonds we wanted to find out how some of the biggest consumer goods have held up over time, have they appreciated or depreciated over the course of the last decade?
We travelled back to find out the original list price of the biggest consumer items released in 2007. By comparing them to the current value of those items today, we were able to discover how much you stand to gain (or lose!) on your initial investment over that 10 year period.
From timepieces to jewellery and even a highly sought after cuddly toy, the items that increased in value over time may surprise you!
Here’s what we found out...
Gold was the most reliable investment you could make in 2007, increasing 101% in value over the last decade!
Omega and Rolex timepieces were the next best buy, increasing in value by 47% and 28%. The Rolex Submariner 16610LV increases by 131.7%!
One cuddly toy stood out from them all in 2007, the limited edition Princess Diana Beanie Baby. Do you have one stashed away?
According to our data, if you’re looking for an investment timepiece then a Rolex or an Omega is a fairly safe choice. In terms of holding value that has potential to increase in the future, the Rolex Submariner and Omega Speedmaster are as dependable as you get! Both Rolex models increased in value steadily over the 10 year period, with the Rolex Submariner 16610LV increasing a huge 131.7%.
Our research shows that the technology and gaming sector was the worst performing, with products depreciating at an average of 85% over 10 years. Many models brought out at this time are now defunct and almost worthless within a year of manufacture due to the release of a new model.
Unfortunately it’s similar news for those investing in luxury goods! A 2007 Lamborghini Gallardo would be worth only half it’s original value today, going from almost £150k to just under £75k. Ladies looking for that investment handbag would be set to lose 62% of their initial purchase price, with a Louis Vuitton model only worth £150 of it’s original £395 price tag.
Cars will take their biggest hit of depreciation in their first year of ownership which continues to gradually slow down after the third year. It’s estimated that a new car will depreciate at an average of 40% over the first 3 years. The Golf GTI lost 80% of it’s original £20,000 price tag over the time period, with models available from just £3,995 on AutoTrader.
Ben Johnson, Web Manager at Milton’s Diamonds said, “People looking for an investment should definitely consider a luxury timepiece like a Rolex or Omega, or a classic piece of jewellery, preferably gold jewellery, to see a return on their investment in the future.”
So what would his expert advice be to those seeking to invest in an item that would be more or less safe from a depreciation fate?
“You always need to carefully consider an investment purchase, thinking about whether you’re purchasing a timeless design or just a fad fashion accessory can save you thousands of pounds in the future. Shopping around for the best price at the time is also wise. New watches aren’t always the best value, and looking around to see what's on the market can help make the most of your budget.”
Disclaimer: Not all watches will increase in value and figures here are based on particular items