Invest in Sneakers

Risk Category & Investment Horizon

Sneakers are categorized as a moderate-to-high risk investment with an investment horizon typically ranging from 2 to 11 years. These iconic footwear items have transcended their utilitarian purpose to become coveted, high-value assets for collectors and investors alike.

In the world of investments, the concept of "Blue-Chip" assets typically conjures up images of established, financially robust companies that have stood the test of time. However, in recent years, a new category of Blue-Chip assets has emerged, and they're not stocks or bonds. Instead, they're sneakers – iconic items that have become highly valuable due to cultural shifts, celebrity endorsements, and savvy marketing. Today, sneakers have firmly established themselves at the intersection of fashion, art, and collectibles, leading to a thriving secondary market.

Sneakers have come a long way since their humble beginnings as athletic shoes. The market for sneakers is robust and expanding. Iconic sneakers have become coveted, high-value assets for both collectors and investors. For example, the Jordan 1 Retro High Off-White Chicago has achieved an annualized return of 116% over the past 5 years. The market value for sneakers is projected to reach $138.13 million by 2028, with an average annual growth rate (CAGR) of 7.2%.

Key brands in this market include Nike, Nike Jordan, Adidas, ASICS, Yeezy, and New Balance. The market for used sneakers has developed into an annual industry worth $2 billion, with key trading platforms such as StockX, Flight Club, and Stadium Goods leading the way.

Historical Performance and Top Auction Results

The sneakers market is thriving, reflected in some recent notable auction results:

• Jordan 1 Retro High Off-White Chicago - Achieved an annualized return of 116% over the past 5 years.

• Nike Air Mag Back to the Future - Fetched $92,100.

• Nike SB Dunk Low Paris - Sold for $51,950.

• Nike Air Yeezy 2 Red October - Achieved a sale price of $15,000.

• Nike Dunk SB Low Freddy Krueger - Fetched $30,000.

• Air Jordan 11 Jeter - Sold for $40,000.

• Nike Air Yeezy 1 Grammy Prototype - Sold for $1.8 million.

• Nike Air Jordan 4 Eminem Carhartt - Achieved $30,000.

• Nike Air Force 1 Entourage Undefeated - Fetched $20,000.

• Nike SB Dunk Low What The Dunk - Sold for $5,000.

Risk Considerations

The sneakers market is not without its risks. Misrepresented items, where sellers inaccurately describe or present the sneakers, and counterfeit pieces are common issues that can mislead buyers. As the popularity of sneakers increases, these risks become more pronounced. It is crucial to purchase only from trustworthy sellers and conduct thorough due diligence to identify investment-grade assets and determine appropriate pricing. Additionally, fees and taxes associated with higher-value assets must be considered to ensure the investment remains profitable.

Investment Case

Despite these risks, sneakers offer significant potential. With Splint Invest, investors can diversify their portfolios by investing in various asset categories, including sneakers. Each investment opportunity undergoes extensive due diligence and is validated by an experienced team, ensuring security and authenticity. The sneakers sourced by Splint Invest come from trusted partners with a proven track record, and all assets are securely stored and insured in freeports and vaults.

For further information, contact Mario von Bergen, Co-Founder and Head of Investments, at info@splintinvest.com. Note that while past performance data can inform forecasted estimates, it is not indicative of future results. Changing market conditions can affect these predictions, and different investments involve varying degrees of risk.