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

A Louis Vuitton bag is the best investment during inflation, here's why [research + infographic] (1)

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

A Louis Vuitton bag is the best investment during inflation, here's why [research + infographic] (2)

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.

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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.

A Louis Vuitton bag is the best investment during inflation, here's why [research + infographic] (3)

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

A Louis Vuitton bag is the best investment during inflation, here's why [research + infographic] (4)

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.

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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?

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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.


A Louis Vuitton bag is the best investment during inflation, here's why [research + infographic] (5)

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'.

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Why Louis Vuitton is a good investment? ›

When looking to invest in a designer handbag, you want to know your investment is safe and the majority can be returned if you decide to resell. With Louis Vuitton, many of their bags return a high percentage of the original price, if not more, so they have proved to be a safe and savvy brand to invest in.

Do Louis Vuitton bags go up in value? ›

Louis Vuitton bags

For example, the Nigo Keepall Bandoulière bag has a 119% average value retention, while the Louis Vuitton x NBA Ball in Basket Bag has a 147% average value retention. The brand's average retention value at resale is 92%.

Is Louis Vuitton luggage a good investment? ›

Louis Vuitton bags can be a great investment as they are one of a few luxury brands that hold their value well over time. Especially if you care for and store it correctly. Also, if you manage to get a rarer, more unique model, it can either hold or increase its value.

Why are luxury bags investments? ›

They can be great wardrobe investments

A quality designer handbag can be a great wardrobe investment. It's designed to last you a long time and will look beautiful along the way because of its quality.

Why does Louis Vuitton keep increasing? ›

Why has there been a price increase? The Louis Vuitton price hikes are said to have been due to an increase in production costs, more expensive raw materials, and higher transportation costs. Overall, this has led to higher manufacturing costs, and therefore the price of Louis Vuitton goods has had to be increased.

Why is Louis Vuitton so popular now? ›

So why is Louis Vuitton so popular? Louis Vuitton is a fashion icon and one of the most popular luxury brands in the world. Everyone from business professionals to fashionistas finds the brand desirable, and since it is a status symbol it gives off an air of success for those who possess it.

Do Louis Vuitton bags depreciate in value? ›

Louis Vuitton is in the depreciating segment because you can never sell any of their bags above retail price, but compared to other bag brands, Louis Vuitton bags can retain their value better and don't depreciate as fast as other brands.

Why does Louis Vuitton burn unsold bags? ›

Louis Vuitton Destroys Unsold merchandise? The main reason Louis Vuitton destroys unsold merchandise every year is to prevent price reductions and theft. LV is adamant that all their customers pay full price for their products and you will never find authentic, new Louis Vuitton merchandise on sale.

Which luxury bag is worth buying? ›

Investing in what we like to call the holy trinity of luxury handbags—Chanel, Louis Vuitton, and Hermès—is a no-brainer when looking at the resale value. The fashion crowd has also put designers like Chloé, Céline, Gucci, and Loewe on the It-bag fashion map with styles that have become classics in their own right.

What is so special about LV? ›

Louis Vuitton's reputation for high-quality craftsmanship can be seen through the materials and durability of each piece. The bags are meant to be used often without showing signs of wear and tear. This is further exemplified through vintage pieces, which can be years old and still look brand new.

Why do people love Louis Vuitton so much? ›

They're well made in terms of durability and craftsmanship, they last an indefinitely long time if taken care of, the designs are nice, and it is a good brand to feel an affinity for. Also, unlike most luxury items they actually have a pretty good resale value, some historical models even go up over time.

What is Louis Vuitton's unique selling point? ›

It doesn't engage franchise services and keeps its product distribution limited to the 500 stores it operates worldwide. It's a classic tactic Luxury brands employ to deliver exclusive services to their customers. As a designer product, Louis Vuitton focuses more on quality than quantity.


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