A Louis Vuitton bag is the best investment during inflation, here's why [research + infographic] (2023)

Do you think spending several thousand dollars on a luxury handbag might actually be a better investment than going for the S&P 500 or gold during inflation?Discover the best Louis Vuitton bag to invest in!

In this article,bagaholicpresents historical data onLouis Vuitton Neverfull, one of the most popular designer handbags in the world. We'll compare investing in this exchange with investing in the S&P 500 index and gold over various time periods to see if a Louis Vuitton bag can outperform more popular conservative investment tools.

In addition, we'll investigate why an item that may seem like an unnecessary expense can actually become an investment with a better return.

It's been 15 years since the bag was launched 15 years ago.

1. Louis Vuitton Prices Are Only Going Up

Accordingresearch data from TheRealReal, Louis Vuitton and Chanel are among the brands that best retain their value over time. Both brands have made handbags a girl's dream and a treasured item.

That said, not all bags from these two brands are equal in terms of return on investment.

Introduced in 2007, Neverfull's retail price increased from $625 to $2,030 over 15 years, which translates to a 307% return on your original investment; Not bad considering an average return of 12% on the S&P 500, which would increase your capital by 180%. only . In just 5 years, we have witnessed an impressive price increase from $1,180 to $2,030, a 58% increase in total.

And we're just talking about retail here. If you can get a good deal on a used bag, the return on investment can be twice as impressive.

2. Never beats the S&P 500

Investing in an asset, say an Apple stock, is neither good nor bad in and of itself. What this investment will bring is based on two pillars: when buying and when selling.

While the S&P 500the historical average annualized return is 10.5%Let's see if a stock can top that on a 15-year scale.

Between 2007 and 2022, the S&P 500 index rose from 1,474 points to around 3,050 points, which means a 207% return on the original investment.Meanwhile, Neverfull's price grew by 214%, from $625 to $2,030.

Neverfull doesn't just outperform the S&P 500. If you're buying stocks, tHere is oneYour portfolio is likely to plummet as inflation rises. With physical assets like handbags, on the other hand, prices are unlikely to drop any time soon. In addition, each year the French handbag manufacturer increases its prices even more. Given that we are facing the recession with the highest inflation rates in our conscious lives, next year the stock market will be even less attainable.

3. Neverfull is a better investment than gold

Having conquered the 10th stage, gold barely managed to grow. AccordingmacrotendênciasIn fact, over a 10-year period from 2012 to 2022, the value of gold increased by 13%, from $1668.86 in 2012 to $1883.55 in 2022. If you had invested $850 in gold at that time, it it would only convert to $960 and you would have to live 10 years with the stress of seeing your investment drop to -35%.

However, over a 15-year period, the price of an ounce of gold increased from $677 to $1,844, representing a 172% return on the original investment.At the same time, the price of Neverfull increased from $850 to $2,030, representing a 138% return on the original investment.

Although gold is considered a conservative investment portfolio asset, it is still susceptible to significant fluctuations.

4. Inflation is accelerating

With inflation reaching amaximum 40 yearsin July 2022, evenElon Musk admitethat 'physical assets are generally the safest investment in times of high inflation'.

As wages struggle to keep up with inflation, it looks like households will tend to spend less in the coming years. And it does not promise a positive outlook for the stock market. As long as consumers spend less, profits for big companies won't reach record highs, which in turn means that major stocks are likely to stay at the same price level or simply plummet.

The S&P outlook is not bullish with tons of cheap money pouring into the market during the pandemic and it will presumably take at least a few years to reverse.

5. It only takes $1,000 to get started

Firstly, investing in a stock exchange is much more affordable than any other physical asset such ascars, wine or watches.

Second, while $2030 seems pretty high, the good news is you can get started with even less.

How is it possible?

Investing in a particular asset is not necessarily equated with any potential return. When and where you bought those shares says a lot.

With bags, it's the same thing. With the boom in second hand shopping, there is no need to pay store price.

By closely monitoring transactions, you are in command of your finances, which means you manage how much you invest and how much you receive in return. Having invested some time in exchange for experience, you'll easily beat Neverfull's historic annual price growth.

according to ourPre-Loved Neverfull Price SearchYou can find a Louis Vuitton Neverfull MM in good condition on the resale market for around $800, it will probably sell for more in 2 years. One of our customers recently revealed that he bought a Neverfull for $500 just a few years ago. Now she sold the bag for $700 in less than an hour. That's a 40% return on your original investment. It is not bad.

With the second-hand luxury market awash in fakes, the most important step when buying a second-hand designer bag is making sure it's authentic. you can askprofessional designer bag authenticationofbagaholic.

6. No Red Figure Stress, Ever

When it comes to investment objectives, capital growth is often considered the number one objective, while in reality capital preservation and loss prevention is a rule of thumb that precedes capital gains.

Second-hand bags work incredibly well. As the retail baseline grows, so do pre-loved items. In fact, it seemsthey do not lose value.

Also, having an investment portfolio made up of stocks is much less stressful than watching your stocks fall into the red every day. You use the power of retail therapy and at the same time make a safe investment, how about that?

7. There aren't that many people here... yet

List of many renowned investment advisorsphysical assets likereal estate, wine and fine artsas the safest types of investment. Few take luxury bags seriously, and even if they do, they often talk about Hermes Birkin/Kelly bags.

It is likely that in the coming years we will face something comparable to a gold rush, only with more accessible physical assets, such as designer handbags.

Resume

Neverfull is the BThis Louis Vuitton bag for investing

luxury brands likelouis vuittonor Chanel carefully preserve their value. There are no rebates or discounts, and used parts generally retain their high value.

This research presented historical data on how the Louis Vuitton Neverfull bag compares to the S&P500 and gold, with the benefit of hindsight. Based on this data, it can be predicted that luxury handbags will only increase in value. There's a reason to call them "investment pieces". And the Neverfull is the best Louis Vuitton bag to invest in.

Investing in stocks seems like a strange idea unless you check the facts. With today's high inflation bouncing since 1981, while stocks and bonds make your investment portfolio red, a designer handbag seems like the perfect investment. This takes the stress out of watching your stocks plummet and gives you the joy of building your unique handbag collection at the same time.

There are dozens of limited edition tote bags that not only maintain their value, but also see significant price increases. If you are interested, check out Bagaholic's courseHow to invest in luxury handbags'.