The old saying (or maybe it’s a new one) is that you should never use a credit card for credit because most anything you typically buy is extremely unlikely to increase in value. It is the rule of desirable goods that their exchange value must diminish the moment you add on that debt.
And this is true for most anything, short of your home, property, stocks, bonds, and maybe a few select automobiles, wines, and art. But there is a new investment in town that has been steadily rising in potential over the last 10 years – designer handbags.
But just how much potential are we talking about?
According to Art Market Research (AMR), the value of such designer handbags as Louis Vuitton have increased by an average of 83%. Okay, so let’s put that into perspective. Gold has pretty much flat-lined over the last several years, stocks allow for a fairly stable 7% annual return, and your home is probably teetering around 3%, give or take.
Rules of Investment
But not every designer bag has the same potential, and this is where this investment can get a little tricky. The first rule is that a handbag needs to be difficult to get your hands on. The reasons for this can vary between price and numbers. Which brings us to the next rule, and that is the most collectible handbags are almost always a limited release.
Hey, we said this was a great investment, but never said it was going to be an easy one. A few designers that you’ll want to keep track of are LV, Chanel, Hermes, Fendi, Gucci, Saint Laurent, Givenchy, and Balenciaga.
Just keep in mind, that unlike stamps and cars, you won’t have to wait years to see an increase in value. In most cases, once you get your hands on one of these coveted names, there will already be somebody waiting to spend two to three times what you just did to add to their own collection.
And we can’t forget to mention that there is always the benefit of having a luxury designer handbag (or three) to enjoy!