Traditionally, the most popular investments have been stocks or real estate. However, over the last several years, the volatile markets have made alternative investment options increasingly popular. Alternative investments are traditional assets that are not in the conventional equity, income or cash categories — such as fine art, luxury watches, cars, wine, or designer handbags.
Luxury handbags are examples of alternative investments, and a great way to diversify one’s investment portfolio. Many ultra-luxury handbags, like classic Chanel flaps and Hermès Birkin handbags, have proven to appreciate significantly over time. Hermès Birkin and Kelly bags are particularly good investment pieces.
Last year, a Credit Suisse report found that handbag sales were up 60 percent, outperforming the art market, and handbag sales were up 92 percent over the past decade. The report also predicted that handbags would be the best collectible over the next year, as they are the least volatile of any asset class and have proven to be good hedges against inflation.
In fact, according to Art Market Research (AMR), handbags now outperform art, classic cars and rare whiskies in terms of investment potential. Some bags, from the likes of Hermès, Chanel and Louis Vuitton, have even experienced a valuation spike of an average of 83 percent in the last ten years.