Podcast: Is a Chanel handbag a good investment? Is there value left in Europe and, if so, where. Ruminate on your ethics if you feel its okay for readers to be duped of the investment value of a Chanel bag, without the full disclosure of the high risks that come along with a low-quality, yet overpriced bag. So, you are saying a mid 60s person will look 55 w/ a Chanel bag? Even if we all agreed it was exquisite, its still not a fiscal investment. Now who is being misleading? Maybe understand that misguiding impressionable readers into believing there is investment value in a Chanel bag is incredibly irresponsible and no different than members of Reddit encouraging impressionable people into investing in GameStop thinking they can get rich too. Im 55 years and I bought my first Chanel bag in when I was 29 not because of a vibe or exclusivity but because I loved the bag ( and still do ) Chanel doesnt have to be in a Game . Herms Birkin bags, in contrast to Chanel bags, have had higher volatility, more comparable to that of global bonds or hedge funds among financial assets, according to the firms, which note, however, that Herms iconic Birkins have a better risk-reward than Chanel bags. You dont seem to know much about Chanel at all. its an opinion piece. Please find some perspective. But investments arent just typically what you think of; in fact, there are many alternative investments such as vintage cars, fine art, wine, and luxury goods that not only hold their value but also continue to grow in their value. Such matters are not worthy of a serious financial publication. Chanel substantially hiked prices during a global pandemic and economic crisis. We also get your email address to automatically create an account for you on PurseBlog. In her latest Weekend Essay podcast, chief reporter Lois Vallely asks if a Chanel handbag is a good investment to diversify your portfolio? Some bags have even experienced a valuation spike of an average of 83% in the past 10 years. In fact, when I was at university, I remember actively trying to avoid spending my money on clothes. Tom Baigrie: Protections fork in the road. Let me go buy a Chanel bag as an investment when a recession is looming. So I just used to borrow hers. Our website usescookiesto improve your user experience. If you want one and you can afford it, buy the bag. And who do you think is going to pay? However, are all Chanel flaps created equal? I can only guess you presume everyone who reads here is under 40 years of age . So, No, no one would. Premium labels like Escada, Gucci, and Jimmy Choo apparently. Also, I have to add, theres a reason the SEC released several PSAs informing the dangers and risks of meme stocks to naive retail investors. Just like the other examples provided, accessories have been discredited as investments. , Using big words doesnt make me mad, arguing with multiple people for merely expressing their opinion in the comment section does though. But still NOT an investment. Handbags are here for us to appreciate. Its as irresponsible and dangerous as telling someone to invest in an MLM or cryptocurrency like a commenter said. Our headline comes directly from a recent financial report, which discusses categories of collectibles like art, wine, watches, and, to a more limited extent, handbags. I dont understand your comment.what does an age has to do with a handbag ???? Not to mention everyone has those basic flaps now and theyve become too easily accessible. For instance, a pink Chanel purse which retails for $3,200 is listed for lease at $320 per week. Oh bless. With this example, its easier to understand how volatility can affect which bags are better collectible investments. Since thats not possible, we continued reading the report. When Counterfeits Distort Buyer Perceptions. But thats only for those considering collectibility and investment. Thats pretty disingenuous and quite an immature world view. I was taught in financial markets class that past performance doesnt predict future so promising to earn on Chanel bags bought at today prices is a bit naive. I dont buy bags to show off or to have something someone else does not, I buy them if I like them and that is it. Herms pricey handbags are the safest and least volatile investment market of the three, Baghunter asserted at the time. Specifically, the report says Lagerfeld-designed bags (well get to that later) are likely to continue to benefit from the scarcity effect in the next few years but the brands broader evolution in luxury handbags will be determined by the ability to sustain collectors excitement going forward.. What really threw into light the eye watering price tag was the fact that another of my close friends (also called Lois) got a horse for her 21st birthday. And its not just Chanel. Shame on this website and this author for trying to dupe their readers into thinking any bag let alone a Chanel bag is a good investment either youre being paid off by Chanel themselves to make up these poor conclusions or just delusional, More likely Fashionphile to whom they link to in most articles. Of course we can all have our own opinions. The article cited a study by Art Market Research (AMR), which suggested designer bags now outperform art, classic cars and rare whiskies in terms of investment potential. All the while household debt continues to climb and wages remain stagnant. Reflecting on the performance of various types of assets in recent years in their newly-released Collectibles Amid Heightened Uncertainty and Inflation report, Credit Suisse and Deloitte highlight luxury handbags and watches as among some of the most striking, noting that watches, jewelry, and handbags especially Chanel handbags are clearly standing out as stores of value with low volatility (between 2.5 percent and 5 percent annually) and low drawdowns, and with annual returns that average between 4.5 and 6.5 percent. However, with Europe having outperformed the S&P 500 by 6.3 per cent in US dollar terms for the year to date (as of 13/06/2017), how much outperformance potential is left? Ladies (and gentlemen), lets empower ourselves by building our wealth one step at a time. After acknowledging that the luxury handbag category fared fairly well: We find that Chanel handbags, traditional Chinese works of art and wristwatches offer the best inflation protection, while fine wines, modern and contemporary art, and American and Latin American art tend to suffer in high-inflation regimes. With that dumb logic how do we know youre not Laura posing as a different account? Oh kim, theres no attacking. At a time of uncertainty, investors want stability. You are not the elected representative for what women want. I sold a lot of them and paid for my son to go to college. You know you want it. Upon resale in December 2022, if unused, that bag might fetch around the price originally paid. What a hoot. Good grief. Investing in stocks and properties are great investments, the article suggested. In fact, when you look on Fashionphile, Yoogis Closet or Rebag, you can find Chanel bags for 30-50% off the retail, depending on the condition and size. Have your say More information can be found in ourPrivacy Policy. Greenwashing Within the Fashion Industry is the UKs Next Target. These returns are compared to those from fine art (+2% according to the Sothebys Mei Moses All Art Index), classic cars (+6.2%), and fine wines (+5.4%). Recently I flew back to Belfast for the first time in forever to visit Kate, after two or three Covid-halted previous attempts. This means that the average annual return of 10% for Rolex watches for example is double the usual fluctuation range of 5%. Hypothetically, lets consider a Chanel flap purchased in December 2021 from a reseller. It is estimated this market will surpass $52 billion in the next five years. Just because its not an opinion that you value or agree with doesnt make it piss poor. It goes both ways. Luxury handbags and watches continue to beat out other collectibles when it comes to annual returns. Especially in the current volatile market we are in, low volatility sounds pretty good to me! Thanks purseblog! And then, imagine believing this fiction will be supported by the larger market as the world plunges into a material recession. Lets discuss the reports repeated characterization of Chanels Lagerfeld-designed bags. Save my name, email, and website in this browser cookies for the next time I comment. The Surge in Demand for the Chanel Vintage Maxi Flap, Heres Why Chanel is Going to Open Private Boutiques, Apple Stock or Chanel Flap Guess the Better Investment, The Best Classic Handbags to Invest In Now, The Financial Reasons Why the Hermes Birkin is an Investment, Stay Current with PurseBop Features and News, Pursebop is the culmination of a childhood dream to share my appreciation for the whimsy of fashion. More about PurseBop, Subscribe to stay updated with the latest handbag news, Deep Dive Investigation Into the Popularity and Values of the Herms Mini Kelly 20, CHANEL 1994 Vintage Black Caviar Chevron Maxi XL Flap bag 24K GHW, HERMES Epsom Horseshoe Kelly Sellier 25 Rose Azalee Parchemin, CHANEL Caviar Quilted Medium Double Flap Light Pink, HERMS Mini Mauve Sylvestre Swift Lindy 20, HERMS Birkin 25 Chai 25 Chai Clemence GHW, CHANEL Vintage Black Caviar Small Classic Flap 24K GHW, Buying a Chanel Classic Flap at the Flagship in Paris and the Savings. Our site is PurseBop after all. Perspective can give that. The harder a bag is to buywhether thats because it is part of a limited release or simply more expensive than its patented peersthe more coveted it becomes.. The best inflation protection (as measured by performance in extreme inflation periods) is offered by Chanel handbags, followed by traditional Chinese works of art and wristwatches, in particular Rolex. In contrast, it asserts that Birkins have had more volatility more comparable to that of global bonds or hedge funds among financial assets, but a better risk-reward than the latter. Its plain the mean girls view vibe here is strong with yal. Its very different to our news coverage and is purely a piece for online and our podcast. Go on. Then, one wonders to which bags the report is referring. And theres the possible wear and tear. I bet she wouldnt be this way if my opinion was blindly positive. Hi Harry, our Weekend Essay series is a content form where we touch on wider issues, sometimes slightly beyond the realm of financial advice. In 2021, which saw strong rebounds in sales and performance of collectables, annual returns for collector Rolex watches rose by 33 percent, and returns for Chanel handbags were up by 24.5 percent, per Credit Suisse and Deloitte, likely boosted by the scarcity of Lagerfeld-designed bags. Interestingly, Chanels rise in return stands in stark contrast to Birkin bags, the return on which was actually down by 3.5 percent. Thats me in a vintage store in Notting Hill looking at these beauties to figure out what wouldmake for the best investments. That Credit Suisse and Deloitte Luxembourg concluded Chanel bags were strong in an inflationary and volatile economy is, of itself, fascinating. Fast forward a year later, and theres no guarantee youd get anything near that price if you rehome it, even if unused. Women want bags that provide EXCLUSIVITY, and Chanel hasnt been in that game for a minute. Please select which newsletters you would like to receive: We use cookies to personalize and improve your experience on our site. Simply put, the scarcity and lower volatility of Chanel bags. Sweetie I think you meant to publish this in The Onion, not Purseblog. Comparing Chanel to fine art is a red herring and false equivalency given the several different factors of value retention and the overall market. With the growing demand and limited supply and access to classic Chanel bags, this will only drive the prices in the resale market. Also why are you targeting this specific commenter when multiple people have called out the authors myopia and irresponsibility? Registered office At 7th Floor, Vantage London, Great West Road, Brentford, England, TW8 9AG. Items typically rent on a one-week basis for 5-10% of their retail value. Youre just copying and pasting your comments from your previous right? I dont have to agree with the Multiple people you speak of. But first, the report. What to prioritize is not the place to buy those stupidly expensive bags. Issued jointly by Credit Suisse and Deloitte Luxembourg in June 2022 and titled Collectibles Amid Heightened Uncertainty and Inflation, it examines recent collectible trends in light of events of the last two years. Most vulnerable to more elevated inflation regimes are fine wines, and American and Latin American art. Dont just take my word for it. Chanel Bags, Rolexes Make for Inflation-Proof Investments, Per Credit Suisse Report, introducing quotas tocrack down on the quantities of bags, A 2016 report from resale company Baghunter, analysts stating in a note in February 2018, Shein, Cider Among Chinese Brands Building Global Awareness, Per Kantar, Herms Revenue Tops $5.5B in H1, as Birkin-Maker Beats Rivals on Margins. And no one with an ounce of conscientious sensibility towards investing would assume this is expert investment advice. What Does Californias New Plastic & Packaging Law Mean for Brands, Retailers? which is being short sited and very incorrect. However, Rolex fans also may be pleased to learn that those watches are considered best investments. Your comments are both uninformed and ageist. Particularly noteworthy are Rolex watches and Chanel handbags, with very strong information ratios of 200% or higher. Thats a whole other topic for another day). But purchasing lower-end handbags will end up with no value. In fact, two of my vintage Chanel bags were sold way above the price I paid for them and I walked away not only getting the best cost per wear since I wore them for quite some time but also made extra cash that I can invest into other bags or put in my investment accounts.