Vintage Style

To The Old Days

Vintage clothing in recent years, for the first time, has been recognized as a tangible (hard) asset, which means that it has value. The asset purchased retains an immediate monetary value. The asset may well appreciate, hopefully at a rate faster than inflation. During periods of high and/or rising inflation, hard assets (including collectibles) tend to outperform financial assets, which often depreciate in value in the face of high inflation. The driving force during the price mark-up phase, when collectibles prices escalate rapidly over a period of years, is the level and direction of real interest rates. First oil, then labor costs, then general inflation, have started to awaken from their slumber. Now collectibles and other hard assets should begin to outperform financial assets, as they did in the prior inflationary wave of 1973-1981. Once the tide starts to come in, the trend should continue for years, not just for weeks or months, if history is any guide. Collectors of jewelry and vintage clothing can expect to have the wind at their backs in the years ahead.