Luxury - The New Smart Investment

Luxury - The New Smart Investment

For years now, we've been accustomed to hearing that luxury items like clothing, handbags, accessories, and shoes are mere indulgences, and frivolous impulse buys. However, let's pause for a moment and consider the allure of a Louis Vuitton bag. Isn't it fair to say that investing in such a timeless piece is actually a wise allocation of funds? In fact, today's luxury handbags, exemplified by iconic treasures like the Hermés Birkin bag, the Chanel Classic Flap, and cherished vintage pieces, have transcended their status as mere fashion accessories. They have evolved into sought-after investments, rivaling the appreciation potential of traditional art forms.

Over the past decade, there has been an extraordinary surge in the prices of designer vintage bags. Not only have they gained immense value, but they have also transformed into a fashion essential. It's no surprise that these bags have transitioned from being considered mere indulgences to being recognized as investments, with certain pieces now commanding prices exceeding $50,000!

Luxury Investments Like No Other

Why are luxury handbags increasingly being seen as a smart investment now more than ever? Well, for one thing, these pieces appreciate in value over time. Unlike stocks and shares which can fluctuate in price, designer vintage bags and even other luxury items (think Rolex) have been steadily increasing in value since the early 2000s - and there's no sign of this slowing down anytime soon. If anything, there seems to be a rapid boom.

Something that may play into the increase in value is the complex rarity of some of these vintage handbags, along with how sought-after they are becoming especially as influencers and celebrities use these as status symbols. As the years pass, these luxury bags, designer jewellery, unique pieces of clothing and accessories become more exclusive - meaning they are harder to find in good condition.

hermes bag for sale

Better Than Investing in Art

In a report by Art Market Research (AMR), it is said that specific items have become luxury investments of choice, surpassing art, classic cars and rare whiskies in return potential. Come on, these bags have worked for a platform like this. Continuing, designer bag brands such as Hermès, Chanel and Louis Vuitton have appreciated astronomically over the last decade with a staggering average increase of 83% - and we’ve seen this throughout Fashion Week, in auctions, expanding right across social media, and since consignment stores (both brick & mortar and online) have boomed.

To show the clear advantage:

  • Coins have risen by 21%,
  • First-edition books by 42%
  • Watches (such as Rolex), the appointed royalty of stylish investments, by only 72%.

The report has also boasted an insane 3,500 luxury handbags sold at auction in 2019 alone, raking in an impressive $32.9 million USD! This is proof that these luxurious items are as popular and sought-after as ever.

Without question, though, the most sought-after item we’ve seen over the last few years, and that continues to skyrocket in value, is the legendary crocodile skin Himalayan Birkin crafted by Hermès. It has been long identified as not only a highly collectible handbag but one that can significantly appreciate in value over time. In 2016, an extraordinary white gold and diamond hardware encrusted Birkin achieved a stunning 2.8 million Hong Kong Dollars (approximately $372,600).

The Ultimate Spend

It's time to stop seeing luxury handbags as nothing more than a frivolous purchase and start viewing them as the investments they have become. Ultimately, we’ve learned that vintage handbags and other luxury items are being seen as investments because of their increasing value, rarity and ethereal timelessness.

With the right care, an Hermes Birkin bag or Classic Flap can become a valuable asset that will last for years, boasting true craftsmanship and quality in their make. When someone is ready to give their bag to a new home, and it’s been well taken care of, these bags can have a second (and third … And fourth) life. It's never too late to make smart luxury investments, even if it does come in the form of a stylish Louis Vuitton – break the mould! Your future self will thank you.

Back to blog