Let’s talk about $hoes
Tale of an Asset Class
Did you know that the dollar has lost its value by 90% since its inception ,meaning that if you had $100 dollars ,the value of that $100 dollars right now would be only $10 dollars. The entire purpose of this article is to tell you ,the reader that ,we have to make smart decisions with money , fiat currencies are getting printed everyday and we are at the brink of inflation. So with the dollars you have it is wise to buy assets ,assets that appreciates so that you don’t run into the risk of falling pray to inflation . When it comes to assets ,you have stocks ,property ,Commodities ,Crypto but the world is changing and with that change there are new asset classes that are booming and gaining traction ,one of those assets are shoes .In my humble opinion I believe certain types of shoes are a really good at preserving wealth.
In the universe of sneakers filled with Nikes ,converses ,Yeezys ,Supremes and many more ,I’m just a new collector. My understanding of an asset is that it has to appreciate ,there has to be enough liquidity ,there has to be an intrinsic value, can be used as a currency , should be transferable and has to beat inflation .
and I think that this particular fashion accessory can be classified as an asset .
However, not all the shoes can be categorized as an asset ,you cant just run into your local Walmart and buy a pair of shoes and call it “Hey I am an investor “ ,there are certain types of shoes that fall under this category. And it is your responsibility to find out which shoes stands out from the rest.
A Commodity ?
Now when you hear the word “Commodity” Gold and Silver comes into your head . And No! I’m not comparing Gold and Silver to shoes nor do I think Shoes are above them. but I believe that “Shoes” can be taken as a commodity as well, because it has certain properties that Gold and Silver hold. Gold and Silver is tangible , meaning you can touch a brick of gold and you can touch a brick of silver ,It is tangible and so as shoes ,you can touch it and wear it . Both Gold and Silver can be used as a fashion accessory ,so as shoes ,they are a practical item. Although comparing a precious metal to a piece of clot seem preposterous I stand by my claim ,and that this day and era collectables have become a different type of a commodity .
Can you trade shoes though ? for money or for something else ,absolutely there is a whopping 32 billion dollar market cap in the reselling industry ,meaning that once you buy a pair of shoes for a retail price; lets say a pair of Air Jordans ,
for a retail value of say $200 Dollars ,you can flip the shoe right away for a higher price because there is only a limited supply of the said shoe so the demand goes up as soon as retail stocks finishes and there are people who make massive profits from reselling/flipping . Moreover, HODLing on to the shoe for a longer period of time also generates a capital gain because the older it gets the more vintage it becomes and since there are only a limited number of shoes made ,you can bargain the price of the shoes ,say after 10 years for a massive profit.
Lastly, because we live in the digital era you don't have to trade your shoes for fiat currency ( dollars ,or euros ) you can trade your shoes for crypto ,there are many resellers out there that trade crypto for rare and valuable shoes and make good bucks.
Stock X (https://stockx.com/)
.Stock X is the biggest market space that is out there for everything that is collectables and shoes are a big component of stock x ,thousands of trades happen on Stock X everyday and thanks to stock x resellers and buyers have their own market place to get a fair value for their collectables . Simply ,you select the shoes you want to buy in and then pay the amount ,then the reseller get notified he or she or they ship the shoes to Stock X ,they validate the authenticity of the shoe and then they ship you the shoe. Fairly simply and it works just like Amazon or Ebay .
One of the main features of Stock X that I like is that not only they operate as a typical market place like Ebay or Amazon ,they also operate as a trading app like Etorro ,or Plus500 ,meaning that I get to see the what trades are going on at the moment ,liquidity of the asset ,numbers of buyers ,number of sellers ,and not only that they have a feature called “Portfolio” where you can track the value of your own collection .
Now go easy on me I am still a novice collector and fairly new to the game in this massive culture I’m not a reseller or a flipper I’m just a long term HODLer .I will be adding more shoes as they come .
Again, we are seeing a beginning of the end of Fiat Currencies , with the amount of printing . Look at the chart beneath me that illustrates the amount of money printing done by the FEDs and you could see that the rate has had a parabolic increase in the year 2020 . More money will get printed so we need other means of assets to preserve our wealth . I want you to consider about this asset class ,before stepping on it and consider investing in some good shoes .at least a 5% of your entire wealth .