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.
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.
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!
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.
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!
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
hell let’s encourage people to blindly invest in penny stocks next!
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.
Agreed!! Chanel quality 📉
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.
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….
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.
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.
We’re comparing rare fine art paintings made in extremely limited qualities to mass-produced bags now?
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.
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.
Sweetie I think you meant to publish this in The Onion, not Purseblog.
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.
!!!! It’s as irresponsible and dangerous as telling someone to invest in an MLM or cryptocurrency like a commenter said.
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.
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.
Personal taste aside, you’re right. Even if we all agreed it was exquisite, it’s still not a fiscal investment.
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…..
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.
Yeah, great. Hope he appreciated it. But still NOT an investment.
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.
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.
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!
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.
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
More likely Fashionphile to whom they link to in most articles. SMH
Its an opinion piece. Not an expert investment advice piece.
dumbest thing I ever read.
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…
No, no one would. its an opinion piece. Good grief. 🙄
Hence why we are giving our opinions dear 🙃
Sounds like you’re the one that needs to calm down 🤷🏻♀️
Literally where did I say it was?
Also why are you targeting this specific commenter when multiple people have called out the author’s myopia and irresponsibility?
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
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.
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
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. 😘
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
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 ❤️
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.❤️
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.
Oh bless. I wish you and your mean girls crew well Gladys. Love and light and peace to you. ❤️
Don’t waste your time with “them”…it is probably the same person posting under different accounts…gaslighting and calling names.
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.
No one should invest in any bag.
It is an investment in your personal happiness – that is where the line must be drawn. Handbags are here for us to appreciate.
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!
I wonder if any bank accepts a Chanel bag to pay for mortgage!
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.
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.
I personally don’t see bags as investments. While it is clear that there are lots of instances where people have sold bags at a profit (myself included), I would never purchase a bag as an investment with the confidence that I could definitely sell it later for what I purchased or more. I purchase bags to enjoy them and wear them which means that they will wear and could potentially be damaged. I think people who purchase smart can make a profit reselling bags they no longer want but to me they are not sound investments.
As Chanel prices reach new highs, Purseblog’s publishing standards hit new lows.
Chanel is machine made for me it’s Hermes all the way. Sorry Chanel!!
So? Using a sewing machine does not equal lesser quality. Also, don’t be fooled. Hermès ateliers use sewing machines too. Not everything is handmade.
Imagine your financial advice to protect yourself during a recession is buying a mass-manufactured bag that’s as overpriced as it’s quality low.
Laughed out of Wall Street.
Not just Wall Street lmao 🤣
“Why You Shouldn’t Invest In Chanel Handbags” would be better advice.
I don’t know about Chanel but I sold my black Birkin 30 this year for twice what I paid for it ten years ago. So even though bags are not an investment per se, they can still make you money.
Chanel is not Hermes.
Hermes has retained it’s quality & craftsmanship.
Looked at Hermes reseller websites lately?: Hermes birkin: split at the handle, tarnished hardware, shape relaxed from wear, discoloration on corners! I’ve had Chanels for over 16 years now and I’ve never experienced this with Chanel. I own 10, the last purchased last year! Two months or so ago, you could not purchase a new Chanel maxi(any style) anywhere in the world. I was told by my S.A. when trying to get one for my friend to purchase. So I dont understand the “massed produced” comments. Why the hostility? During the economic downturn nine years ago everything lost value but my Chanel bags.
Yes, and I recently purchased a 25 cm Birkin in Ostrich and sold it a few months later, to FP, for a $15K profit. Admittedly, this is atypical, but I more than enjoyed reaping the benefits of my “investment”.
While I understand that many (most?) commenters will be dismissive of this opinion piece, there is a reason why many affluent consumers are flocking to high-end watches, luxury cars, collectibles, and art during this inflationary time.
An Ur-Leica recently sold for triple the record-breaking price estimate at an auction. The same goes with rare, collectible cars that have shot up in value recently.
One of the best investments I ever made was the Hermès Leica M7 I purchased 12 years ago and subsequently wrote about it on our blog. This camera will likely one day pay for one of my kids’ entire college tuition, judging by recent auction prices of similar cameras.
I do not think that luxury items should be outright dismissed as a potential option to hold value long-term. Imo, the comparison to crypto is not applicable, as there is a tangible real-world appeal and perceived value in luxury accessories that are propped up by scarcity, be it artificial (by limiting supply like Rolex or Hermès) or real (by supply chain disruptions). Humans have always cared greatly for shiny things, a tale as old as time itself.
Still, any investment is only worth so much as the next person is willing to pay for it and some investments are more speculative than others. It’s always wise to diversify!
You can any bags but hard to buy baby milk formula. 🤷♀️
I don’t think you or Patricia should make any comparisons between Hermes or Rolex to Chanel given how the resale market for Chanel isn’t as stable as Hermes. Fashionphile and sellers on Vestiaire are already dropping prices. Prices dropped BELOW retail in Korean resale markets. Chanel doesn’t have the same status in resale as Hermes and to compare them would be disingenuous.
Even then, it’s mainly Birkins/Kellys or super rare designs that go above retail in regards to Hermes, excluding outliers, other stuff have below average and straight up poor resale. I’d admit Chanel maintains its value better across the board like with costume jewelry, shoes, and clothing, but they still depreciate in value.
Definitely irresponsible comparisons on the admins to absolve themselves of publishing this misinformed, delusional article.
Its an opinion piece. How are you so outraged by an opinion piece?
How am I outraged for calling out a bad opinion? How are you so open to gaslighting a person who simply is negatively responding to the authors opinion with no evidence of outrage?
Oh and this is what gaslighting means, just so you understand its meaning and can maybe try to apply it in the correct context. “Gaslighting is a form of psychological abuse where a person or group makes someone question their sanity, perception of reality, or memories. People experiencing gaslighting often feel confused, anxious, and unable to trust themselves”.
I was using the term gaslighting as an overstatement/exaggeration (rhetorical device) to mirror your grandiose claims of my alleged outrage when I was giving my opinion. After all isn’t it just an opinion and I’m entitled to have one 😘 ❤️ Hopefully you can find peace. It’s not becoming to constantly fight with people that disagree with you 🥰
Oh back peddling. Lol. Constantly fight people? Another overstatement/exaggeration of yours? You are quite the contradiction. Peace back to you too sweetcheeks ❤️😘😘
You’re the one that started a fight with me by responding multiple times to my comments. Maybe don’t start what you can’t finish sweetcheeks ❤️😘😘
Gaslighting? Come on. I guess its still trendy to throw such an overused term about huh?
Cannot agree with you more. If any bags can be collectible, then should be Hermes only. The quality of Chanel was worse than LV since the early 2000s, though the aesthetic can be pretty, interesting, and fun.
First of all, this writer is simply sharing her experience and perspective on bags as a financial investment. Take it with a grain of salt, and realize it’s just one opinion of many on the subject.
Second, if you are considering a bag as a financial investment, do the research on the bag and its history on the secondary market. Decide your appetite for risk and don’t spend money your aren’t prepared to lose. Just like any other investment. Some brands, styles, colors and sizes stand the test of time better than others. You will likely need to hold onto the bag for several years for it to be profitable (IF it is profitable).
The reasons above are why I view my handbags as wardrobe investments, not financial ones. I do try to purchase bags I will enjoy for many years, but I am realistic about their prospects of increasing in value. If I get a decent cost per wear, and enjoy carrying the bag, then I’m getting all want out of it.
Depends on the Chanel bag style. I have sold some that depreciated considerably in value and others that more than doubled what I originally payed for them (especially vintage)
My gut is “yes” and “no”. Chanel bag before 00s will appreciate or at least sold at a higher price numerically even if the actual value did not increase (just like the same bottle of milk valued at 10 cents in the past is sold at $3 now) – given the currency depreciated fast enough. New Chanel bag might not because the price increase is too fast that outpace currency depreciation. Controversial brand exclusivity, dodgy quality and overwhelming super fakes will not help retain values.
I’ve bought and sold Chanel bags for years. Last year I flipped a Chanel Surf collectible bag (a small one) and made $3000 profit. It’s true the market for used bags is in the buyer’s market status. But just like anything else, wait and it will go back up again.
Luxury goods are Veblen Goods (Google it) and often aren’t affected the same way as non-Veblen Goods are because they’re less price sensitive. Most people that buy them do so for status. Which means that people that buy them often have the income that is less affected by inflation and recession…aka rich people. Items that are more price sensitive tend to be food, for example someone might switch from name brand to private label because there’s cost savings during inflation.
And as far as good investment, that’s only if you sell. If you never sell a stock, bag, house or anything then it’s unrealized gains. I would say Chanel at current retail sucks as an investment. Only good if you bought years ago and sold now. At $8800 with not such great quality, a person won’t even break even when selling to a place like Fashiophile or one of those because if they buy for $9K, then they have to sell it for at least $11K.
I only came here to read the inevitable fights on whether Chanel is worth it. A bag is not a financial plan and arguably if you are not truly well off I don’t see the price as justifiable. It’s just leather after all and it’s not exclusive at all unless you are talking about rare models. But again, no bag will make you money unless it’s in perfect condition and that means that it can’t be used and enjoyed as it should. Given the depressing state of the world economy, I’d rather spend my $$ on a Bottega or whatever and save the rest for a rainy day but to each her own!
Wow, you did a lot of research on this! They should teach this in an economics class!
about what not to do when investing!
From now on, all brands are expected to find it difficult to sell their handbags or other products as they used to. Even if it is a rich group, the number will decrease and I think that I will not buy expensive bags like now. The flow of fashion will definitely change considerably.
In addition, the situation is changing even in second-hand stores. For example, in South Korea, second-hand bags are not selling well, and resale is not as easy as it used to be.
I have a vintage chanel single flap with a matching pouch bought $900 5years ago. Had it restored and can sell it now for over $2000. I also have a chanel pink valentine flap bought it $1700 4yrs ago and can sell it now for over $2000. I have a small chanel mademoiselle bowling bag. This one i cant sell for so much. This is so cheap right now.
Y’all are getting worked up in this comment section and that’s exactly the goal of this clickbait blog post. More clicks ultimately translates into more revenue for the site.