I wrote this article back in 2018 “Can your next Chanel bag make you money? Looking at designer bags as alternative investments“, which continues to be my most popular article I’ve ever written on Medium. I am not surprised because this topic continues to both fascinate and divide people. You often hear about luxury influencers and YouTubers talking about their designer bags as “investments” and the luxury community is so divided on this topic with one side saying no they are not while the other says they are, indeed.

I understand. It may not be an “investment” in the most traditional sense in that bags are meant to be loved and used (could there be a bias in that because it’s women investing and empowering ourselves and building wealth? That’s a whole other topic for another day).

What if I told you that they are actually a savvy investment option you should consider? It’s a tangible asset that you can collect, use for many, many years, and sell for significant profit?

Making the case for Chanel bags as sensible investments

Side note: I’ve actually sold some bags recently to further curate my closet. 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. I also see my collection as part of my investment portfolio, providing extra financial security.

We are experiencing an uncertain economic climate right now with the rising living costs, inflation, and now the talk of a recession. All the while household debt continues to climb and wages remain stagnant. Some say cash is king, others say cash can lose its value with the ups and downs in the global economy.

Chanel Investing 1

It is all about diversification, and I am here to tell you that: YES you should invest in real estate, YES you should invest in the stock market and bonds and YES you need to invest and prepare for your financial future. But investments aren’t 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. And guess what? Luxury handbags are one of those categories that continues to outperform other traditional collectibles.

By their correlations, most collectibles offer diversification to traditional financial assets such as bonds and equities – Deloitte

Don’t just take my word for it. The latest collectibles report by Credit Suisse Deloitte proves what I’ve been saying for years and here are the top three highlights:

1. Chanel bags are better financial assets with strong demand

Lagerfeld-designed Chanel handbags are likely to continue benefiting from the scarcity effect in the next few years, in our view, but the brand’s broader evolution in luxury handbags will be determined by the ability to sustain collectors’ excitement going forward. Hermès Birkin bags, in contrast to Chanel bags, have had higher volatility, more comparable to that of global bonds or hedge funds among financial assets, but a better risk-reward than the latter.

Another side note on that: Hermès Birkin bags have actually outperformed the stock market and gold in the past. As a matter of fact, this CNBC article states that handbags were better investments than other asset classes.

Handbags As Investments Luxury Index

Chart via CNBC

2. Luxury handbags have low volatility, hence providing more stability for investors

Watches and jewelry as well as handbags (especially Chanel handbags) are clearly standing out as stores of value with low volatility (between 2.5% and 5% annually) and low drawdowns. With the exception of pocket watches, their annual returns are 4.5% – 6.5%. Their information ratio (which puts returns in relation to volatility and is thus reflective of the risk-reward) is impressive, with values exceeding 100%, i.e. average returns systematically outpacing fluctuation ranges. Particularly noteworthy are Rolex watches and Chanel handbags, with very strong information ratios of 200% or higher. This means that the average annual return of 10% for Rolex watches for example is double the usual fluctuation range of 5%.

Especially in the current volatile market we are in, low volatility sounds pretty good to me!

Luxury Investments Drawdown of Collectibles

Chart via Credit Suisse Deloitte

3. Chanel bags can protect you from inflation and give you extra financial security during recession

As 2022 is marked by a transition to a more elevated inflation regime and higher interest rates, it is relevant to evaluate the sensitivity of the various collectibles to inflation and interest rates (see Figures 4 and 5). 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. Most vulnerable to more elevated inflation regimes are fine wines, and American and Latin American art. Conversely, classic cars and post war & contemporary art do best in low or normal inflation times. Rolex watches appear to be the ideal inflation all-weather stores of value.

What is driving this growth and its impact on the resale market: Chanel’s pricing strategy is primarily contributing to their exponential growth. Chanel has had multiple price increases in recent years; in fact, since 2020, Chanel’s prices have gone up more than 35% for their Medium Classic Flap.

There will always be people who can afford these bags no matter how much Chanel charges them (pretty soon, the Medium flap will likely surpass Hermes Birkin prices…). However, for most of us, this is causing us to look into the resale market to get our hands on Chanel bags, whether they are preloved or vintage. In fact, when you look on Fashionphile, Yoogi’s Closet or Rebag, you can find Chanel bags for 30-50% off the retail, depending on the condition and size.

Not only that, the recent surge in popularity in Vintage Chanel bags is also driving up the prices for bags that are 20-30 years old.

Angela Hwang Shopping For Chanel

That’s me in a vintage store in Notting Hill looking at these beauties to figure out what would
make for the best investments…

Case in point, I remember purchasing my Vintage Jumbo XL flap for $2,000 in 2018 and now it is $6,000+. Forbes also reported earlier this year that one of the leading consignment stores, Fashionphile, reported $500M in sales. In fact, Bain estimates that the luxury resale market is estimated to be valued at more than $33 billion. It is estimated this market will surpass $52 billion in the next five years.

With the growing demand and limited supply and access to classic Chanel bags, this will only drive the prices in the resale market. Now is the time to get your Chanel bags. Soon, could it be possible that the resale market for Chanel may mirror that of Hermes in which the prices exceed the retail price?

Investments are personal and often emotional choices. Let’s not judge each other on how we choose to spend our hard-earned money.

Ladies (and gentlemen), let’s empower ourselves by building our wealth one step at a time.

Cheers!

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Patrice
Patrice
1 month ago

I hope people who read this article take it the same way they take it like watching a Marvel movie and not something legitimate. Because viewing a Chanel bag (any bag period) as an investment is incredibly foolish. Like “thinking mayonnaise is an instrument” type of foolish

Gladys
Gladys
1 month ago
Reply to  Patrice

hell let’s encourage people to blindly invest in penny stocks next!

Helen
Helen
1 month ago
Reply to  Patrice

and on top of it is the bad quality Chanel is famous for and the insane price increase out from nothing during panoramic, I no longer support the brand.

jenansd
jenansd
1 month ago
Reply to  Helen

Agreed!! Chanel quality 📉

sally
sally
1 month ago

Sweetie I think you meant to publish this in The Onion, not Purseblog.

Kim
Kim
1 month ago

Buying luxury goods as an investment is a myth (a scam) perpetuated perpetuated by the same industry to ease the qualms of value-minded shoppers, because “that 10k bag must be worth it if I can sell it down the line!”

In reality, for Chanel bags, they lose so much value from the rapid deterioration due to one wear that it’s impossible for them to retain or appreciate in value.

As a “marketing executive” I expected better research and ethics, but then again.

Want good advice: make safe investments and don’t be fooled into buying a bag by some marketing executive as an “investment” because these people are as shifty as those cryptobros that told you to invest in Dogecoin.

Patries
Patries
1 month ago
Reply to  Kim

The value of an investment is what someone else will pay for it. Why would you say that Chanel (or Dogecoin for that matter) isn’t worth is? Clearly not to you, and that’s okay. I would never be caught dead in a Lambo, but that is me not the majority of 40+ males. I wouldn’t want one for $30.000. If there is someone that will buy it because they love it then they will pay the price. Well a Chanel it’s just leather you would say…how about a Rembrandt…it’s just canvas and oil paint….

Kate Belot
Kate Belot
1 month ago
Reply to  Patries

if you want to justify buying a Chanel by calling it an investment, fair enough. But just don’t confuse it with an actual investment. Investment dressing means the best cost over wear over decades, like with a Burberry trench and certain Chanel styles will get you that. Just like the other examples provided, accessories have been discredited as investments. Important distinction to make.

Paul
Paul
1 month ago
Reply to  Patries

Dogecoin is literally worthless due to the systems that allows it value to be diluted by unlimited mining . In fact it was literally made as a joke in response to bitcoin. So I don’t know why you are desperate in trying to lend any semblance of defense to this.

Yasmin
Yasmin
1 month ago
Reply to  Patries

We’re comparing rare fine art paintings made in extremely limited qualities to mass-produced bags now?

Kim
Kim
1 month ago
Reply to  Patries

Also, I have to add, there’s a reason the SEC released several PSAs informing the dangers and risks of “meme stocks” to naive retail investors. 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.

Kim
Kim
1 month ago
Reply to  Patries

Stop misattributing what I said. I said, the value of Chanel in the resale market is so volatile almost completely prone to depreciating value, akin to cryptocurrency, that it’s not a sound investment and shouldn’t be regarded as investment advice.

Comparing Chanel to fine art is a red herring and false equivalency given the several different factors of value retention and the overall market. Ruminate on your ethics if you feel it’s 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.

Emily
Emily
1 month ago

I was taught in financial markets class that past performance doesn’t predict future so promising to earn on Chanel bags bought at today prices is a bit naive.

Gladys
Gladys
1 month ago
Reply to  Emily

!!!! It’s as irresponsible and dangerous as telling someone to invest in an MLM or cryptocurrency like a commenter said.

pinksky777
pinksky777
1 month ago

This whole article is laughable. You’re not going to make money on your basic ugly Chanel bag ladies. First off, Chanel just isn’t the vibe anymore. Unless you want to look 55 yrs old, Chanel isn’t it. Not to mention everyone has those basic flaps now and they’ve become too easily accessible. Women want bags that provide EXCLUSIVITY, and Chanel hasn’t been in that game for a minute.

Linda H
Linda H
25 days ago
Reply to  pinksky777

So, you are saying a mid 60’s person will look 55 w/ a Chanel bag? Now who is being misleading? I can only guess you presume everyone who reads here is under 40 years of age . . . which is being short sited and very incorrect.

Kate Belot
Kate Belot
1 month ago
Reply to  pinksky777

Personal taste aside, you’re right. Even if we all agreed it was exquisite, it’s still not a fiscal investment.

Joey
Joey
1 month ago
Reply to  pinksky777

I don’t understand your comment….what does an age has to do with a handbag ???? I’m 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 doesn’t have to be in a “Game “ . It doesn’t matter what kind of brand a bag is from , you buy a bag because you like it. And it doesn’t matter what age you are…..

Gina McCanless
Gina McCanless
1 month ago
Reply to  pinksky777

I rarely makes comments in discussions like this but I am 57 Love my Chanel bags and at one point I had 38 at one time. I sold a lot of them and paid for my son to go to college. So yes it was an investment for me. I still have several of the classic flaps ect.

Kate Belot
Kate Belot
1 month ago
Reply to  Gina McCanless

Yeah, great. Hope he appreciated it. But still NOT an investment.

Luxalot
Luxalot
1 month ago
Reply to  pinksky777

You’re just copying and pasting your comments from your previous right? Just want to make sure you aren’t wasting time retyping because you make the same comment for every post. Also, please stop using the words, “vibe and basic.” I’m embarrassed for you.

Raven Espinosa
Raven Espinosa
1 month ago
Reply to  pinksky777

I love my Chanel bags and I am not 55, I am 49 and proud of it. I don’t buy bags to show off or to have something someone else does not, I buy them if I like them and that is it. You wouldn’t understand that since your whole life is probably about trying to outshine everyone but most of us don’t need to do that because we have better things to do.

Sandy
Sandy
1 month ago
Reply to  pinksky777

You are not the elected representative for what women want. Your comments are both uninformed and ageist. There are stylish people of all ages who love their Chanel bags!

Evann
Evann
1 month ago
Reply to  pinksky777

There are a lot of very exclusive bags you can buy from Chanel. Basic flaps are only one part of the collection. You don’t seem to know much about Chanel at all.

psny15
psny15
1 month ago

No one should invest in any bag.

Last edited 1 month ago by psny15
Amber
Amber
29 days ago
Reply to  psny15

It is an investment in your personal happiness – that is where the line must be drawn. Handbags are here for us to appreciate.

Gladys
Gladys
1 month ago

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 you’re being paid off by Chanel themselves to make up these poor conclusions or just delusional

Anne
Anne
1 month ago
Reply to  Gladys

More likely Fashionphile to whom they link to in most articles. SMH

Laura W
Laura W
1 month ago
Reply to  Gladys

Its an opinion piece. Not an expert investment advice piece.

Simbadog8
Simbadog8
29 days ago
Reply to  Laura W

dumbest thing I ever read.

Kim
Kim
1 month ago
Reply to  Laura W

No expert would give this as investment advice. And no one with an ounce of conscientious sensibility towards investing would assume this is expert investment advice.

And all investment advice are some form of opinion derived from experience and factual data, they’re not mutually exclusive. So…

laura w
laura w
1 month ago
Reply to  Kim

No, no one would. its an opinion piece. Good grief. 🙄

Kim
Kim
1 month ago
Reply to  laura w

Hence why we are giving our opinions dear 🙃

Wendy
Wendy
1 month ago
Reply to  laura w

Sounds like you’re the one that needs to calm down 🤷🏻‍♀️

Gladys
Gladys
1 month ago
Reply to  Laura W

Literally where did I say it was?

Wendy
Wendy
1 month ago
Reply to  Laura W

Also why are you targeting this specific commenter when multiple people have called out the author’s myopia and irresponsibility?

Wendy
Wendy
1 month ago
Reply to  Laura W

An opinion piece that has the potential to influence readers, especially those who are naive to the whole world of luxury and want more “value” from their purchases.

Stop defending and absolving the culpability of piss poor opinions on a well known luxury bag website

laura w
laura w
1 month ago
Reply to  Wendy

Oh please, calm down. I’m not defending anything and absolving anyone of anything. Its an opinion piece. Do you even understand what an opinion piece is? Its one persons opinion. Just because its not an opinion that you value or agree with doesn’t make it “piss poor”. I’m sure all the naive people are going to be okay and won’t all madly rush out spending tens of thousands of dollars on luxury handbags somehow believing after reading one persons opinion piece that its the best investment idea they’ve ever heard or. And i’m not targeting anyone. Grow up. I don’t have to agree with the “Multiple” people you speak of.

Wendy
Wendy
1 month ago
Reply to  laura w

Imagine getting this mad over a dime-a-dozen comment on the internet. The irony 😂

Regardless, just like how you claim that misinformed, irresponsible author is entitled to speak their wild opinions of Chanel of being good investment, I’m allowed and so are many other members to call out her BS. Stay mad Karen

Laura W
Laura W
1 month ago
Reply to  Wendy

Calling a writers opinion “piss poor”, “misinformed”, “irresponsible”, and saying she has “myopia” and i’m the mad Karen? What a hoot. I wish you luck with that chip on your shoulder. 😘

Wendy
Wendy
1 month ago
Reply to  Laura W

Using big words doesn’t make me mad, arguing with multiple people for merely expressing their opinion in the comment section does though. 😘 Like I said, the irony

Kim
Kim
1 month ago
Reply to  Laura W

Sounds like you’re still the Karen since while thinking you’re defending some righteous opinion of the author you end up attacking a commenter who wanted to voice their own opinion in response with meltdowns and poor logic to boot.

so the author can give her opinion but we can’t give our own opinions in response?

take a breather girl ❤️

Laura W
Laura W
1 month ago
Reply to  Kim

Oh kim, theres no attacking. Please find some perspective. Its plain the mean girls view vibe here is strong with ya’l. Of course we can all have our own opinions. Its not an attack to reply to someone else’s post. It goes both ways. Perspective can give that. And its not meltdowns and poor logic either. Thats pretty disingenuous and quite an immature world view. And love and light back to you too.❤️

Gladys
Gladys
1 month ago
Reply to  Kim

lmao right? I posted MY opinion in response to a crappy opinion article and SHE gets mad 🤣 please I can’t with some people.

I bet she wouldn’t be this way if my opinion was blindly positive.

Laura W
Laura W
1 month ago
Reply to  Gladys

Oh bless. I wish you and your mean girls crew well Gladys. Love and light and peace to you. ❤️

Ria
Ria
1 month ago
Reply to  Laura W

Don’t waste your time with “them”…it is probably the same person posting under different accounts…gaslighting and calling names.

Gladys
Gladys
1 month ago
Reply to  Ria

So because multiple people came to my defense suddenly, we’re all the same people? With that dumb logic how do ‘we’ know you’re not Laura posing as a different account? How about the other people calling out the author’s bad opinion, all them me as well?

Get a freaking grip.

Kelley
Kelley
1 month ago

Let me go buy a Chanel bag as an investment when a recession is looming. Thanks purseblog! Thanks Angela! Cheers! 🥰 Nothing can go wrong here!

Tonny
Tonny
1 month ago

The rise in prices has not stopped in the United States, and the domestic situation is beginning to have a disturbing atmosphere. What to prioritize is not the place to buy those stupidly expensive bags.

jiljenner
jiljenner
1 month ago

Imagine believing the fiction that a mass-produced handbag, that is still in production–and between its in-store and aftermarket inventory has an availability of at least hundreds of thousands of units–is at all a sound investment. And then, imagine believing this fiction will be supported by the larger market as the world plunges into a material recession.

If you honestly believe this fiction, then please also believe that it would be in your best interest to have sold off your ‘investments’ before the global economies officially declare that we’ve entered recession.