How to Invest in Sneakers on the Secondary Market

How to Invest in Sneakers on the Secondary Market

Sneaker investing has grown in popularity over the years. With so many platforms to buy, sell, and trade sneakers, it’s easy to see how the sneaker market is a billion-dollar industry and growing.

The name of the game is flipping. Just like any stock or real estate property, you want to buy low and sell high for the largest margin of profit possible.

For sneakers, buying low typically means purchasing at retail and selling high typically means holding the sneakers for 6 months to a year or even longer for maximum profits. The process sounds similar to purchasing a growth stock and holding it until you’re ready to sell and turn a profit.

Not every long term hold has to be purchased at retail to make a nice profit. There are a ton of sneakers on the secondary market that you can purchase right now and can expect to see your money double in 6 months to a year. Buying from resellers who are looking to quickly flip their product can be very profitable.

That said, you always have to wonder which sneakers will actually sell and money in a year. Sadly, not all of them go up high enough in value to be worth tying up your money for a year or longer.

Here’s one investment to think about purchasing on the secondary market that will continue to go up in value.

Disclaimer: Please keep in mind that this is still speculation as Juiced IO cannot control the market or predict the future. Invest at your own risk.

Air Jordan 4 Fire Red (2020)

This first investment can be done with both the men’s and grade school sizes. However, if you have less capital then go for the GS sizes.

There are multiple reasons why you should speculate this shoe to go up substantially over the next year. For starters, the Air Jordan 4 Bred that came out in 2019 is now selling for over $400 at the time this story was written. The last sale was a size 11 for $459 on StockX. This shoe was released in May of 2019 so it has been averaging $400 sales in men’s sizes on StockX since August 2020.

What does all of this mean?

That it took 14 months for this shoe to go from its $200 value to $400. Even better, it sold between $270 and $300 for almost an entire year before it rapidly started to increase in value. If you missed out on the release day, but bought 5 pairs at $270 when they were selling at that value on StockX in February 2020, you could’ve started flipping them for $400 in August 2020.

If you sold on eBay and didn’t pay fees, you’re clearing more than $100 per pair for holding the shoe for only 6 months. If you sold them on StockX, after fees you would’ve been at or around $100 per pair for 6 months of holding the shoe.

The grade school sizes of this shoe followed the same pattern as the men’s pairs except the buy-in price was less.

Fire Red 4s that were released in 2020 will follow the same pattern. Right now, men’s pairs have just past $300 on StockX. You have to keep in mind that the sneaker market is on a bubble at the time of writing this because of the stimulus checks being sent out. These pairs will come back down.

Grade school sizes are in the $270 range on StockX, but both men’s and grade school sizes are cheaper to buy on eBay.

Another reason why Fire Red 4s will do well is that they are an OG colorway and most OG colorways perform well on the market. It’s always best to keep in mind that if Jordan wore them in-game, they will be more in-demand than shoes he never wore while playing.

Plus, Jordan 4s are a bit like Jordan 1s when it comes to holding value and going up in the market.

The bottom line is you don’t have to buy shoes at retail for them to be profitable. Buying from resellers who are trying to quickly flip the shoes and holding them for six months can make you great money.

If you’re able to wait for this stimulus bubble to go down and buy in or even find grade school pairs between $200-$250 and men’s pairs between $250-$300 in the next few months, it could be a great investment down the road.

Fire Red 4s aren’t the only pair of shoes that you’ll find profitable by doing this. They are just a good example because they were produced in high quantities and most people who wanted them at retail were able to get them.

This time next year, Fire Red 4s should be selling over or around $400.

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