Handbag lovers, did you see the latest financial news on CNBC? That experts are predicting bags to be the best collectibles investment over the next 12 months. Better than art, better than jewelry. Apparently, Credit Suisse looked at the Knight Frank Luxury Investment Index (KFLII) for Q2 2022 – an index we’ve written about many times – to come to this analysis. Over the last decade, handbag value rose 92%.
Faubourg 20cm Birkins @modemoiselle_13
But let’s look at what that really means. For starters, we are talking about “collectible investments”. Handbags are not being compared to financial investments like stocks, bonds, real estate etc. No one is suggesting to literally keep your money in your purses. Collectibles are a specific category generally limited to the wealthy (although sneaker heads may disagree to the extent kicks are included). Also referred to as “passion assets” these are a category of alternative investments, and include things like fine wines, luxury cars, jewelry, rare stamps and the like. No doubt handbags fit here.
However, not just any handbag fits the bill. In fact, not every luxury designer bag makes the cut. As per the CNBC segment, this is about Hermès Birkins and Kellys and a few select Chanel models. It’s about rare and mint condition, in specific colors and fabrications, and special hardware.
No surprise, the reporter refers to the crocodile Himalaya and Faubourg Birkins presently on the auction block in New York City. If you’re interested, they’re estimated to trade in the hundreds of thousands of dollars at Sothebys and Christies. It’s a deep dive, not one you can just casually dip a toe into.
Himalayan Birkin 25 @mrs_bcworld
Experts point to the low volatility of bags compared to other asset classes and call them a good hedge on inflation. As to volatility, prices historically fluctuate only 2-5%, making them less volatile than either commodities or bonds. And if you’re seeing diversity in your equity portfolio, they certainly provide that.
Watch CNBC video here.
One note though. In Q2 2021, the KFLII found handbags lost the top collectible investment spot to wines. And at other times, other indices labeled Chanel bags the best investment against inflation. In other words, there are no guarantees… that it’s in the bag.
Read:
Hermès Birkin Not Atop the Luxury Investment Index. What?
Chanel Bags Are Best Investment Against Inflation Says One Report
It’s Official: Handbags Are a Top Investment for the Wealthy
Love, PurseBop
XO
Updated: December 1st, 2022
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