Metaverse Investing: How to Buy into NFTs Through Luxury Goods Stocks
Luxury goods stock could offer an alternative route into NFTs, becoming a $55 billion market and possibly surging up 2000% by 2030!
The Metaverse has successfully transformed the economy in two ways. First, by introducing new asset classes, and second, as an alternative investment instrument via Blockchain.
What started as a possible concept for an immersive gaming experience is now a playground for multinational brands and organizations. Fast forward to 2022, Metaverse is a multi-billion-dollar investment opportunity!
It has not only opened up opportunities for new-age adverts but is also a new opportunity for businesses and like-minded investors.
Let’s uncover the what, why, and how of metaverse investing while pointing out all the possible options for you to get started.
The Meta Opportunity!
Today, it’s possible for you to venture into the metaverse! Gone are the days when metaverse was only a platform limited by immersive 3D visualizations. Integrating DAO (Decentralized Autonomous Organization) or a Blockchain-based governance system at the back end allows you to do more than just explore vast digital lands.
Critics see the metaverse’s future as one ‘draped in style!’ However, the past year witnessed the music and fashion industry taking initiatives to step into the metaverse with their inaugural NFT launches. From celebrated fashion houses to prominent recording artists, everyone tried to be a part of the metaverse in one form or another.
In addition, the decentralized metaverse allows users to live a different life over the platform. Users signing up for the platform step in as virtual avatars who can use Non-fungible Tokens (NFTs) as a currency to explore and make the most of their digital lifestyle.
NFT and Metaverse are Mega Opportunities for Premium Brands
Within the short span since its launch, the metaverse is already a platform of investment opportunities! Users that have an idea and already live a digital lifestyle could delve into the chance co-created by the luxury brands to benefit from digital collectibles.
Several instances have already been cited! One such incident happened in May 2021 when Roblox held a virtual exhibition for luxury fashion brand Gucci. As a result, buyers participating in the platform could purchase designer clothing pieces, among other luxurious items used by their in-game avatars.
Other similar incidents were cited around the digital sneakers trend by Gucci, ‘Blankos Block Party’ drop by Burberry, and Louis Vuitton’s ‘Louis: The Game.’ However, these high-profile luxury brands and artists are coming forward to capitalize on the NFT trend and market their post-covid growth.
This way, the publicly listed fashion companies that sell luxury in the real world could benefit from the rise of digital luxury. Moreover, with brands and products receiving the desired support from the meta-audience, the parent brands would ultimately witness a higher market value.
Investing In NFTs Via Luxury Goods Stocks
Based on all the details above, it might seem challenging to get your hands on the exclusive NFTs. However, it isn’t that difficult to invest in one. Listed below are some steps that you should follow to buy into NFTs through luxury goods stock:
Step 1: To start your NFT purchase, you first need to set up a crypto wallet and add some funds in the form of crypto tokens.
Note: When signing up with a crypto wallet to buy NFTs, ensure they are compatible with the Ethereum blockchain. Today, NFTs are primarily based on ETH, and you’ll need to set up your wallet.
Step 2: Once you’re ready with your funded wallet, the next step is to scout for upcoming fashion NFTs.
Note: Follow the news threads on Twitter, Facebook, and news blogs, among other similar sources. This way, you get exclusive details on which luxury brands plan to launch their latest collections.
Step 3: Once you’ve cited the NFTs you want to buy, it’s time to participate in the sale and win the bidding part.
Takeaway note: Remember, if you’re new to NFTs, you might want to check out the gas fees involved in each transaction.
Other Similar Investment Options Through Luxury Goods Stocks
While the NFTs continue to be the hottest market to invest in, not every investor is confident in the notion. Besides, many practical investors seek to reap the profits of investing in these brands in the real world.
Therefore, to help you with the same, we’ve listed some luxury goods stocks to help you maintain balance in your folio while making the most of your investments.
Burberry Group (BURBY)
52-week range: Between $18.18 – $31.62
3.13% Dividend Yield
First, on our list, we have the Burberry Group. This London-based luxury brand is into selling fashion accessories, apparel, and fragrances globally.
The brand ventured into NFTs Mythical Games in August last year. Since its collaboration, the brand has issued an NFT character for their Sharky B and an animated NFT of their deer mascot. Both the products have been a hit in the metaverse and received record-breaking responses.
In addition, the collaboration resulted in a 15% increase in revenue in the Asia Pacific region. Therefore, you could consider adding BURBY to your folio to improve your chances of increased returns.
Ralph Lauren (RL)
52-week Range: Between $86.54 – $135.99
2.14% Dividend Yield
Next up is the New York-based Ralph Lauren! This brand has established itself as a domestic luxury, with its product lineup that includes fragrances, home products, apparel, footwear, and jewelry.
Earlier last year, the brand collaborated with Roblox to launch their ‘Winter Escape’ collection, receiving a great sale from the metaverse. In response to their first meta sale experience, the brand has since launched Polo Shops for the users to buy their own RL clothing.
Talking about the company’s performance, the recent events induced a 27% increase in revenue, making it an excellent option for you to invest in the RL shares in 2022.
52-week range: Between $46.59 – $93.04
1.59% Dividend Yield
Last, we have the Paris-based brand Kering which stands second in the line of luxury goods manufacturers. Its brands include Balenciaga, Gucci, Yves Saint Laurent, and Alexander McQueen.
Like Ralph Lauren, Kering’s sub-brand Gucci had also collaborated with Roblox to introduce digital items from the brand. Users who participated in the auction bought the products in no time. In addition, Balenciaga had also partnered with Epic Games to release its products in the Fortnite game.
These activities resulted in a 35% YOY increase, making the brand worth 17.64 billion euros.
Don’t miss out on the 1.59% dividend yield from the PPRUY brand!
Capitalize Your Investments Today!
Metaverse has much potential to add to the table for both brands and investors. Instances of digital items being re-sold for more than their actual products’ worth are only some hidden investment opportunities.
Remember, the success of some of these luxury houses is only an example of what is to follow, so make the most of the ongoing trend today!