Handbags as Alternative Investments - Part 4


What would Monday be without the weekly series?

A bore!

We are back ladies! This week, let’s look at which brands we should consider when purchasing our investment grade bags.

Last week, we looked at when the increasing appreciation of handbags began and some considerations to keep in mind when choosing investment-grade arm-candy. This week we continue the conversation.

Ready? Set. Let's Go !

Our Source: Christie’s Auction House, Hong Kong

A limited-edition Mobile Art HK by Karl Lagerfeld,  Chanel, 2008. Shiny black & gold metallic alligator 2.55 double flap 228 bag with gold hardware. Sold for HK$100,000 on 31 May 2017 at Christie’s in Hong Kong 

 



What are the brands to go for? 

We recommend that you go for top performers. There has been consistent success with Hermès and Chanel — they are coveted and collectable on the primary market, which leads to bags that are valuable on the secondary market. If you look at brands whose bags are hard to procure on the primary market, those will be the most valuable over time.’ 

What other factors should a collector keep in mind? 

It is crucial to keep quality top of the list. Whatever the brand, a key factor to consider is impeccable craftsmanship. It might sound obvious, but a well-made piece will stand the test of time, while one that is less well made will fall apart and be worth less on the secondary market years later.’ 

A bourgogne Epsom leather Constance 24 with navy enamel clasp, Hermès, 2016. Sold for HK$225,000 on 30 November 2016  at Christie’s in Hong Kong  

 

There will always be a market for a classic bag because entry-level buyers, in particular, are looking for an iconic piece. Not to mention that a classic bag is timeless and can be worn year-round.

At Chanel, go for the classic flap bag, which will always be valuable on the primary and secondary market.  

 

With Hermès, the Birkin, Kelly and Constance will always do well when reselling.

At Louis Vuitton, there is a clear delineation between the classic collection and the seasonal, limited pieces. In terms of long-term investment, its classic pieces —particularly those with the Vuitton monogram and from its iconic travel collection — have held their value for decades, and will continue to do so well into the future. 

At Fendi, the Peekaboo — its most famous style today — can be a very safe investment. For Dior, the go-to piece would be the Lady Dior. It’s the type of bag that in a classic colour and material will hold its value for a lifetime, and which will be equally loved when passed to the next generation.

Is there value in taking a risk? 

It’s true that a particularly bold colour will make a bag more seasonal, or indicate when the bag was produced. That said, Christie’s always advise clients to look for the one-of-a-kind pieces. ‘It’s often the really special pieces, the limited-edition runs, which end up making the astronomical, record-breaking prices. Those are the pieces that everyone goes to the secondary market for.’

A limited-edition shiny & matte bleu colvert porosus crocodile Ghillies Birkin 35 with palladium hardware, Hermès, 2015. Sold at Christie’s in June 2017 for $81,250 

‘With Chanel, for example, it’s the runway pieces that often end up doing very well at auction because they are produced in limited runs to each store. They are iconic and coveted, and clients gravitate towards them on the secondary market because they can’t get them in stores.’

‘The Hermès Ghillies Birkin that we sold in June 2017 for $81,250 was a special limited-edition piece. It had the iconic Ghillies brocade; two types of skin finishes; and came in a beautiful blue colvert. All of those factors made the bag incredibly collectible, and resulted in it selling at a far higher price than it would probably have retailed for on the primary market. That’s an example of a limited edition adding value.’ 

If you could advise a client to invest in only one bag, what would it be? 

We would definitely advise going for a classic style, which we know will hold its value. Right now I would put my money on a black Hermès Kelly. It’s tried and true, has stood the test of time, and only continues to rise on the primary and secondary markets.

There you have it ! Now go forth and Slay! Maybe next week we should look at identifying counterfeit handbags? What do you think?

 


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