Designer accessory that can make you bags of cash
SOME people think women who spend a fortune on designer handbags that can barely hold a credit card and a lipstick have more money than sense.
But it seems they might not be fashion victims but canny investors.
Research has shown that the value of collectible handbags increased by an average eight per cent per year between 2004 and 2016 – outperforming traditional investment options like fine wine and art.
The only catch is you cannot dangle your Louis Vuitton or your Prada on your arm. It must be locked away so it stays pristine until ready to be sold.
Pontus Silfverstolpe of auctions website Barnebys said: “Next time your partner says she wants a handbag and the price horrifies you, just think thatit may prove to be an investment.”
The trick in investing is knowing just what will make a bag increase in value.
“It could be linked to their limited availability, the rare quality of their materials, the elegance of their design, their condition and, at times, also Himalayan crocodile Birkin bag who owned them previously,” added Mr Silfverstolpe.
His rules played out for the three of the most expensive bags ever sold at auction – all Hermes Birkins. Celebrities, including singer Katherine Jenkins, have been spotted with them. Last year a Himalayan crocodile-skin Birkin became the most expensive handbag in the world after going under the hammer for £208,000.
The pale grey creation with white gold detailing and studded with diamonds went to an anonymous buyer at Christie’s in Hong Kong.
It was commissioned from designer Jean Paul Gaultier and only two were ever made. It Louis Vuitton padlock handbag smashed the previous record of £146,000 which was set in 2015 – also at Christie’s Hong Kong – for a fuchsia pink crocodile skin 2014 Birkin encrusted with diamonds.
A red crocodile Birkin with gold clasps studded with pink diamonds – previously owned by actress Elizabeth Taylor – went for £142,000 in 2011.
Favourite
The Birkin, which was named after actress and singer Jane Birkin, has been a favourite with celebrities and socialites since its launch in 1984.
Each bag – whether it has been constructed from ostrich skin, calf leather, goat leather or lizard skin – takes 48 hours to hand-stitch. Specialist website Barnebys hosts 2,000 auction houses and carries a million objects for sale every day.
Its experts noticed a rising trend in collecting top quality handbags from a limited number of luxury brands.
Besides Hermes, other brands which do well include Chanel, Fendi, Prada, Christian Dior and Louis Vuitton. Auction prices start from £900.
Handbags tend to appreciate in value even when the economy is in a downturn because they remain status symbols for the richest women in the world, who are usually recession-proof.