Treating your luxury bag like a stock

Addendum: March 18, 2024. After doing some more research you CAN invest in Louise Vuitton via LVMH, and you can invest in LVMH via LVMUY if you're in Canada or the U.S. More on this as I learn more about it!

My Dad plays the stock market and does well. I've always been interested in it and thought I could do well also but it's a lot to learn! It seemed a bit easier to digest when I took finance as part of my business studies. I LOVED finance! However, it's been years since I used anything I learned and I've since needed a refresher for which I have no time. Therefore, my husband does this for us instead because he does well in the stock market and his brain is better equipped for it.

However, since I started looking into luxury purses I couldn't help but notice how the prices have increased on some brands and models. In fact, the resale market for luxury purses is massive and many retain close to their initial value, and some even go up. There are a ton of websites and articles and blogs that give you a rundown of prices of various bags, year by year. These increases are supposed to reflect inflation and demand. How is the demand created? Coming out with limited quantities, limited quantities of limited editions, and never having a sale. And of course, celebrity endorsement and other factors. 

Checkout: https://collectorscage.com/blogs/guides/louis-vuitton-bag-price-list-for-us-and-europe-2024

Also, it's cheaper to buy a luxury purse in Europe than Canada, even after the duties and taxes (which you can claim back). I did the math for you :) trust me.

Apparently, Louis Vuitton increases their prices once every year to two years. Knowing that, and which purses are their most popular ones, as well as those rumored to be discontinued are just some of the ways to narrow down on an investment piece. It really does become similar to buying a stock! Plus it's something prettier to look at then the acronym of stock names listed in black and white on a piece of paper or on your WealthSimple account. Though I do like seeing the number go up! >:o)

So, if you're unsure about buying a luxury purse, just think of it as an investing in a stock. Since Louis Vuitton, Gucci, Hermes, Dior, Chanel are not publicly traded (I checked) this might be the closest we'll come to owning a piece of the ever growing empire. It's also a great way to justify dropping some serious coin on a purse! Some of the popular brands that actually appreciate aren't even that expensive in relative terms. In fact, you'll be surprised by which models are the most sought after, which actually appreciate in value. Of course, like any stock, some are more profitable than others where the return on investment could be huge...but then, so is the initial price tag. Just like some stocks. Those will be your Chanels and Hermes. 

If you're interested in an invest bag, truly for investment only, I'd suggest doing your own research. For example, I've been to Live Auctioneers and seen Chanel purses (looking old and used) go for no less than $4500.00. Keep in mind these bags are old and used so the initial investment might've been around that price point or lower. One Chanel bag was auctioned by a 90-year-old woman!! And it went for $4800.00!! Can you imagine how much SHE mustve paid for it?? Most of the Chanels I saw were the classic model with flap or double flap and the "boy bag". It's only certain brands and styles that will give you a return on investment so chose carefully. And treat your bag well! I know my next one (after the next one) will be an investment piece! ;-)