While you may
think the wisest financial minds invest in property, art or the
stockmarket, the savvy investor is putting their money into designer
handbags.
The
point was proven when a Hermes crocodile-skin Birkin bag sold at
Christie's this month for an eye-watering $170,00, far exceeding its
estimate of $120,000.
Here, SAMANTHA BRICK and ALICE SMELLIE speak to four women who have invested in handbags — and got a golden return...
I watch the market as others watch shares
Initial cost: $40,000
Current value: $70,000
Fashion consultant Noreen Goodwin, 47, lives in West London with her eight children. She says:
Fashion consultant Noreen Goodwin, 47, lives in West London with her eight children
After
the various financial scandals of the last decade, I'm not sure anyone
totally trusts banks any more. But a decent collection of designer
handbags can have better returns than an Isa — and bring you far more
enjoyment!
I bought my first — a Dior —
in my early 20s after being inspired by Princess Diana. She carried a
small, quilted Dior bag, and I thought she was the epitome of
sophistication.
My collection includes
30 bags from leading brands including Dior, Chanel and Bottega Veneta. I
always keep an eye out for new designers such as Roksanda, whose pieces
might become investments in the future, watching the bag market as
others do stocks and shares. Although I'm not really a Gucci fan, I buy
the odd one because they're a good bet.
Chanel
can be relied upon to at least double in value, so I have some
incredible pieces, including a see-through plexiglass petrol tank that I
bought for £5,000 in 2014. They now sell for twice the original cost,
on the rare occasions they're available.
But
my favourite is a little Chanel Lego bag that I bought six years ago. I
use it every week, so I've had to send it back to Chanel to be mended a
few times. Even though it's so small it can't even accommodate an
iPhone, prices have almost doubled to around £10,000.
Second-hand Birkin can cost even more than a new one
Initial cost: £15,000
Current value: £80,000
Luisa Ruocco, 28, is single and lives in West London. She is a social media influencer @luisainsta and says:
Luisa Ruocco, 28, is single and lives in West London. She is a social media influencer
For
my 19th birthday, I told my mum the only thing I wanted was a Louis
Vuitton bag. Though she never told me how much it cost at the time, I
suspect it was just over £500.
It was my first designer bag and I wore it almost every day at university. I still have it, and it is now worth £1,500.
Today
I own 30 luxury handbags, including six Hermes Birkins, a few classic
Chanels and a couple of Yves Saint Laurent numbers. While some were
gifts, I bought most of them myself. My collection is currently worth
£80,000.
While many people would call this excessive, I'm content to plough my money into bags rather than a car or property.
I've
never felt guilty about buying them because I know they are accruing
value. They are long-term investments, so I have no immediate plans to
sell.
I received my first Hermes — a
cherry-red Birkin bag — in my early 20s from a generous family member.
It's made out of calf leather, so it isn't worth as much as the
crocodile version, but with a current value of £10,000 it's not to be
sniffed at!
I bought three smaller
versions of it in grey, coral and beige at auction because it's
impossible to get on the Hermes waiting list.
I
paid the market value of £5,000 each to make sure I got my hands on
them, but since then they have risen to a value of more than £10,000 per
bag.
Without question, they are my favourite.
I'm always complimented on them when I take them out. Any time I cross
paths with another woman who has a Birkin on her arm 'The Look' passes
between us.
People may be shocked to
discover that I wear such expensive bags when I am out and about, but
I've done my homework and I know it's irrelevant to their resale value
if they have been gently used.
A Birkin
is so hard to come by that the value of a pre-owned, limited edition
version is far beyond what you would ever pay in-store for a new one.
While
designer outfits or shoes will always fall out of fashion and are
rarely profitable to sell on, a classic handbag will always be in style
and repay your investment twice, or even ten times, over. That's why
investing my money in handbags makes perfect financial sense.
My car boot bargain is now worth £7k!
Initial cost: £6,000
Current value: £30,000
Ailsa Russell, 25, is single, lives in London and works as a luxury asset appraiser at Prestige Pawnbrokers. She says:
Ailsa Russell, 25, is single, lives in London and works as a luxury asset appraiser at Prestige Pawnbrokers
I've
been collecting bags since I was 15. I would spend my weekends scouring
the charity shops near my parents' home in Sussex and even pitched up
at jumble sales. People may be sceptical, but boy does it pay off.
My
best find to date was a battered Hermes Kelly bag at a car boot sale. I
paid just £200 for it and sent it off to be repaired. Now it's worth
£7,000. Today I have a collection of 20 bags including Louis Vuitton,
Gucci, Mulberry and Chanel. Though they cost me just £6,000 in total,
they're worth five times that sum.
I've
always been financially aware, and initially I planned to invest in
classic cars. But when petrol prices started creeping up, I decided to
look into bags instead. It's the best decision I've ever made.
Where
possible, I keep them in pristine condition and store them in their
dust bags and with their authenticity cards. While I am attracted to all
the bags I buy, I can't let myself be swayed emotionally. Instead, when
I look at my Hermes bag I see it as a rather nice down payment for a
property in the future.
I'm very
careful when it comes to sourcing bags. I avoid London auction houses
where everything is incredibly expensive and tend to stick to smaller
regional auctions or out of the way places where things that are deemed
to be 'less interesting' are sold.
I
appreciate that for someone of my age it's a strange area of investment
to focus on. But you won't see me complaining when I'm laughing all the
way to the bank!
I know which brands will soar in value
Initial cost: £16,000
Current value: £23,000
Charlotte Staerck, 29, is married to Ben, 32. Together they run the Handbag Clinic and live in Chelsea, West London. She says:
Charlotte Staerck, 29, is married to Ben, 32. Together they run the Handbag Clinic and live in Chelsea, West London
People
think that when it comes to buying a bag it's best to go for something
shiny and new. But I can look at an old bag and know within seconds
whether it can be restored — and so soar in value. It's why much of my
collection is pre-owned.
Though I've
been investing in handbags for only four years, I've got 20, and at
their current market value they're worth £7,000 more than I paid.
Obviously
I am a savvy shopper. I know what brands will increase in price and
spend hours researching the market so I can tell what will grow in value
and what won't.
I'm now an expert in
authenticating handbags through my work, and it means I'm never caught
out by fakes. As any lover of handbags will tell you, your first Chanel
is a big achievement. A black Chanel is a timeless classic that won't
ever lose its value. That's why I also have a 1994 Classic Chanel Maxi,
with its huge 24-carat gold-plated CCs. I bought it for £1,800 in 2015
and it's now worth £2,800.
Precious metalwork on a designer handbag will always make a huge difference to the resale price.
Though
it's not as valuble as most of the bags I own, my favourite is an
orange Chanel vintage handbag from 1989. It's one I would never part
with. It's like my baby! It cost me £200 and is now worth £450.
Friends
do ask to borrow my bags, and normally I don't mind. However, one
friend earned herself a lifetime ban after she left a YSL bag behind in a
bar. That was £650 down the drain!
