Handbags as Alternative Investments - Part 3


It's another #HauteMoneyMonday and boy do we have an update for you!!  Continuing with our series on Handbags as Alternative Investments, this week we focus on more on the finer details. 

With handbags commanding exceptional prices at auction, designer pieces are becoming sound financial investments. We explain what to keep in mind when looking for investment-grade arm candy 

 

As we showed you last week, a matte white Himalaya Niloticus crocodile diamond Birkin 30 sold for HK$2,940,000 in May last year  equivalent to around $375,000, and well over its pre-sale estimate  at Christie’s in Hong Kong, making it the most expensive bag ever sold at auction.

That sale underscored (in case anyone was still wondering) the strength of the secondary market for luxury handbags, particularly those made by powerhouses like Hermès. 

 

The high prices also reflect a growing consideration of luxury handbags as smart investment pieces. According to a recent study, average annual returns for a Birkin have outpaced both the S&P 500 and gold over the past 35 years. But as we keep reminding you, not all bags are created equal, and having a collecting strategy is key. 

 

Tell us about the increasing appreciation of bags as good investments. When did this start to catch on? 

 

People started looking at their handbags as investment pieces around the time of the recession, so 2008 to 2009. In the United States, a trend began to emerge where clients who were buying luxury items wanted to know that the pieces they were buying were going to hold their value over time. It wasn’t frivolous spending; they were really thinking about every purchase they made. This change in mindset started the rise of handbags on the secondary market. 

 

Who are the primary buyers in this category? 

 

We think it’s quite significant that handbags are really the only female collecting category in the auction world. Men have been collecting cars and wine and watches and all of these other luxury categories for years, but women have never had a category of their own. Even with jewellery, while women wear the pieces, men are often the ones who buy them.

For the first time, we have people being a little bit smarter about their luxury investing and women coming into their own and taking on a collecting category for the first time. This combination has really led to the boom in the secondary market for handbags. 

or what?

Next week, we will look at the brands you should go for should you wish to start your collection. An informed is an empowered

Go forth and slay!

 

 


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