In a shift that’s redefining modern wealth management, rich Gen Zers and millennials are moving away from traditional assets like stocks and bonds—and instead investing in luxury collectibles, including fine jewelry, designer sneakers, rare wine, and vintage cars.
According to Bank of America’s 2024 Study of Wealthy Americans, 72% of high-net-worth individuals aged 43 and under are skeptical of putting all their wealth into conventional investments. This generation, poised to become the wealthiest in history, is building wealth their own way—and they're turning luxury items into high-performing alternative assets.
A New Era of Wealth: What Gen Z and Millennials Are Investing In
BofA’s survey, which polled over 1,000 Americans with $3 million or more in investable assets, revealed that younger generations are increasingly drawn to alternative investments such as:
- Watches
- Fine jewelry
- Rare wine and spirits
- Luxury cars
- Designer sneakers
- Antiques and artwork
- Memorabilia and collectible handbags
Why the Shift?
The move toward alternative assets is driven by more than just aesthetics or status. For younger investors, it’s about diversifying portfolios in ways that feel personal, tangible, and culturally relevant. This generation places value not only on ROI but also on emotional connection and long-term appreciation—particularly with assets that reflect identity and style.
The Rise of Collectible Investing
According to the study, a staggering 94% of Gen Z and millennial millionaires expressed interest in collectibles as investment vehicles. This trend contrasts sharply with older generations:
- Only 57% of Boomers are interested in collectibles
- Just 55% of the Silent Generation show any interest
- 80% of Gen X are intrigued by collectibles, especially coins, watches, and fine jewelry
Luxury goods are no longer just fashion statements—they’re investment-grade assets. Bain & Co. projects that by 2030, millennials will account for 50–55% of global luxury market purchases, while Gen Z will comprise another 25–30%.
Fine Jewelry & Watches: Investment Highlights for 2025
Luxury timepieces and fine jewelry have become bright spots for investors, even amid market uncertainty. In fact, jewelry was forecasted to reach €30 billion in market value in 2023, according to Bain & Co. This surge is fueled by high demand, limited supply, and a growing understanding of the asset class’s resilience.
Popular investment pieces include:
- Rolex and Patek Philippe watches
- High-end designer jewelry from Cartier, Van Cleef & Arpels, and Tiffany
- Vintage gold and gemstone pieces with provenance
These tangible assets combine luxury with longevity, appreciating in value while offering wearable appeal.
Luxury Sneakers & Streetwear: The Cultural Crossover
Luxury sneakers, once considered niche, are now legitimate investment assets. Limited-edition drops from brands like Nike, Adidas Yeezy, and Louis Vuitton x Virgil Abloh are reselling for multiples of their original price. Wealthy younger investors are capitalizing on the crossover between fashion, culture, and finance, buying into pieces that are both collectible and culturally iconic.
Rare Wine, Spirits, and Cars: Sophisticated Tastes Pay Off
The luxury asset landscape also includes rare wines and spirits, which offer strong ROI potential through appreciation and auction demand. Labels like Château Lafite Rothschild or Macallan single malt whiskies are becoming portfolio staples.
Likewise, vintage and exotic cars—from Ferraris to classic Porsches—are gaining value thanks to rarity, provenance, and limited production runs. They also offer a bonus: emotional value through ownership and lifestyle enhancement.
Generational Wealth & Philanthropy: A New Mindset
Today’s young millionaires are also approaching wealth with a more philanthropic and inclusive mindset. The BofA survey found that:
- 32% of Gen Z and millennials plan to donate inherited art to museums or foundations
- 26% said they would share their collections with non-art-related institutions
- Only 56% plan to keep all pieces for private use
This contrasts with older generations, 77% of whom said they would keep art strictly for personal enjoyment.
Optimism and Confidence Among Young Investors
Sentiment also sets the younger generation apart. Compared to just 24% of older investors, 51% of Gen Z and millennials rate the U.S. economy as excellent or very good. Globally, only 6% of older investors have a positive outlook, compared to 46% of younger investors.
Personal financial health is also viewed optimistically:
- 75% of younger investors rate their financial health as excellent
- 78% of older investors feel the same, showing confidence across the board
Looking Ahead: Positive Market Expectations in 2025
Despite generational differences, wealthy individuals across the board have high hopes for the next 12 months:
- 42% expect inflation to decrease
- 36% anticipate GDP growth
- 63% believe the S&P 500 will rise
Younger generations, however, remain more confident, more optimistic, and more innovative in how they approach wealth building.
The Future of Wealth Is Personalized
The days of traditional-only portfolios are fading. In 2025, rich Gen Zers and millennials are redefining investing, mixing passion with portfolio diversification. From rare collectibles and fine wine to vintage cars and designer sneakers, these luxury assets are gaining serious ground—and value.
If you’re a young investor looking to diversify in style, now is the time to explore alternative luxury investments.
