The nostalgia market has been big business in recent years. And the main drivers of the industry — made up, in part, by record spending on collectibles — have been younger generations.
Data from a recent report from Bank of America, which surveyed wealthy individuals on their investment habits, shows an outsized interest in collectibles among Gen Z and millennials when compared to their older counterparts.
In the study, 94% of Gen Z and millennials said they were interested in collectibles, ranking watches, jewelry and wine/spirits highly. As the age groups get older, the interest declined, with just 80% of Gen X, 57% of Baby Boomers and 55% of the Silent Generation reporting collectibles interest.
The division across generations can be seen among specific collectibles, with younger generations registering higher interest in sports cards (29% vs. 12%), sneakers (30% vs. 2%), watches (46% vs. 19%) and rare memorabilia (23% vs 12%).
Among younger investors, 39% said they consider the “sentimental value” of an investment to be of significant consideration, while only 6% of older investors said the same.
This is clear from the high-end collectibles markets, which have witnessed rapid growth in many of the categories referenced in the survey in recent years. Industry stalwarts have taken notice, with traditional auction houses such as Sotheby’s making obvious strides to accommodate its younger, wealthy clientele with new initiatives in sports memorabilia and sports cards in recent years.
As wealth continues to transfer from older generations to younger demographics, for whom investments of passion such as collectibles are already at the forefront, these trends appear poised only to accelerate.
Will Stern is a reporter and editor for cllct.