Current Events > Luxury handbags can make good investments

(+) Yeah! (+)

Did you know that?

Investment-grade handbags is actually a thing.

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Investing in Chanel is actually a great way to break the poverty cycle.
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friendbuddypal posted...

Investing in Chanel is actually a great way to break the poverty cycle.

The company or the bags?

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In this research study, we will compare three different types of investments the S&P 500, gold, and Hermes Birkin bags. These three investments have been chosen as they represent distinct and popular forms of investments. The S&P 500 represents reflects the overall return characteristics of the stock market as a whole, gold is the most popular commodity for investors, and Hermes Birkin bags as a collectible and tangible investment. The period of 35 years has been selected for the historical data to reflect the date when Hermes Birkin bags were first produced.
Between 1980 and 2015, the S&P 500 has returned a nominal average of 11.66%, which equates to a real return average of 8.65%. However, these averages do not take into consideration the fluctuation of the markets during this period and assume the investor has chosen to neither buy nor sell for 35 years. For instance, the S&P 500 annual returns peaked during this period in 1995 at 37.20%, but also reached an average low of -36.55% in 2008.
During the same period of time, gold has offered an average annual return of 1.9% which equates to a real return average of -1.5%. Once again the averages do not take into account the fluctuation of the price of gold during this period and assumes the investor has chosen to stick rather than buy or sell during this period. For instance, gold reached a peak average price during this period in 2011 at $1,571.52, but also reached an average low of $271.04 in 2001.
In the same time frame, Hermes Birkin handbags have increased in value year on year, offering an average annual increase in value of 14.2%.
However, unlike the S&P 500 and gold markets, the value of Hermes Birkin handbags has never fluctuation downwards and has steadily and consistently increased. The bags experienced a peak surge in value in 2001, increasing in value by 25%, and with the lowest increase in 1986 when the value went up by 2.1%.

https://baghunter.com/pages/hermes-birkin-values-research-study

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Dude wth

Surprised me too. The market is also surprisingly trusting without any real authentication.

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My first thought was, "It doesn't reinvest, it's not accumulative," but it seems like it is. That's pretty messed up. Better than beanie babies, worse than bitcoin.

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ChocoboMogALT posted...

My first thought was, "It doesn't reinvest, it's not accumulative," but it seems like it is. That's pretty messed up. Better than beanie babies, worse than bitcoin.

I'm a finance major (and work in financial services) and I'm amazed that such a market even exists. My theory is that because demand is so irrationally driven and supply is artificially constrained, all the conventional wisdom goes out the window. Every year there are price rises by the few luxury brands and they're applied relatively quickly and consistently such that there's no currency arbitrage opportunity beyond certain markets offering VAT/GST (tax) refunds and this helps push prices up each year even though the core products don't actually change beyond new colours and occasionally new materials.

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