Why Designer Handbags Are Now Seen as an Investment

Though designer handbags might not be the first thing that comes to mind when considering how to diversify your portfolio beyond the traditional options of equities, bonds, real estate, and more, they are definitely something to consider.

They have now become a more lucrative investment than fine art, vintage automobiles, and even rare whiskies, as reported by Art Market Research (AMR). In fact, the average value of handbags from luxury brands like Hermes, Chanel, and Louis Vuitton has increased by 83% over the past decade.

The considered king of fashionable investments, watches, have only climbed in value by 72%, while coins have increased by 21% and first edition books by 42%. More than 3,500 designer handbags fetched a total of £26.4 million ($32.9 million) at auction in 2019, the research states.

In a similar vein, sales of Chanel's iconic flap bags have increased by 132%.

While everyone has their own motivations for putting their money in the stock market, individuals with the cash to spare typically invest in luxury goods like designer handbags. A bag's desirability increases in proportion to the difficulty of acquiring it; this holds true whether the bag is part of a limited run or just more expensive than its trademarked contemporaries.

Collectors are ready to spend two to three times the retail price of a Hermes bag as soon as it enters the resale market because of the brand's extremely low production and lengthy waiting lists (come on, we all remember that Sex and the City episode, right?).

Many women, however, have an intense emotional connection to the handbags they've amassed over the years, and refuse to part with their collections despite their worth.

For the foreseeable future, supply and demand are aligned in favor of those who trade in and out of designer handbags.



Article kindly provided by pursefactory.ru