From gold watches to luxury bags: Why some people are buying wearable investments [Video]

Scrolling through TikTok or Instagram, it’s hard to escape the flow of social media influencers flashing a new Rolex watch or Bugattis. From designer bags to multimillion-dollar cars, these are the symbols of wealth and affluence millennials and Gen Z, people born between 1981 and 2012, are inundated with daily. And for many of them, it’s reflected in their long-term wealth investment strategy.

The 2024 Bank of America Private Bank Study of Wealthy Americans report found that nearly 3 in 4 (72%) younger people (ages 21-43) believe it is no longer possible to achieve above-average returns by investing solely in traditional stocks and bonds, compared to only 28% of people over 44 who hold the same view.

That same report found that wealthy millennials and Gen Zers allocate three times more of their investment portfolios to alternative investments, such as luxury goods, than other generations.

“Gen Z’s interest in luxury …