Investing in Luxury Bags: Can You Really Make Money?

Investing in Luxury Bags: Can You Really Make Money?

Lately, there’s been a lot of buzz around investing in “exotic” assets like wine, luxury watches, LEGO, and even designer bags. In this article, we’re going to dive into luxury bags and whether it’s really possible to make money by investing in them.

Which Bags to Invest In? Not All Bags Are Created Equal!

The first thing to know is that not all bags are worth investing in. There are three key things that make a bag a good investment:

• Brand
• Color
• Model

Let’s break these down.

The Brand

When it comes to luxury brands, there are three that stand out for bag investments: Hermès, Chanel, and Dior. Why? These are globally recognized brands with decades (sometimes even over 100 years) of luxury heritage. Their bags keep increasing in value and are considered rare—especially Hermès.

However, the brand alone doesn’t guarantee a good investment. The model you choose is just as important.

The Model

Within these brands, some bags are more valuable than others. The timeless designs that have been in production for decades are usually the best bets, as they’ll continue to be in demand for years to come.

For example:

• Hermès: Birkin, Kelly, Constance
• Chanel: Classic, 2.55, Boy
• Dior: Lady Dior, Saddle

Remember, picking the right model is crucial, but color also plays a big role.

The Color

When choosing a bag to invest in, the key is to go for colors that appeal to most people. The more universally liked the color, the easier it will be to resell. Safe bets are:

• Black
• Navy blue
• White
• Beige
• Red
• Burgundy
• Dark brown

Avoid flashy or seasonal colors like bright pinks or greens, as they can quickly go out of style and are harder to resell. Stick to classic neutrals and simple leathers or fabrics.

New vs. Vintage Bags: Which Strategy?

Now, when it comes to buying a bag, you have two options: new or vintage. Let’s look at the pros and cons of each.

Buying New

When you buy a brand-new luxury bag, it loses value the second you walk out of the store—usually around 35-40%. This means you’ll have to wait years (maybe decades) before you see a profit. The exception here is bags like the Birkin and Kelly from Hermès, which are hard to get and can actually increase in value right after purchase, but it’s a complicated and expensive process to get them.

Buying Vintage

Vintage bags, especially those from brands like Chanel and Hermès, often offer better deals because they’re priced lower than new ones. You can even find some that just need a little TLC to restore them to nearly-new condition, which could boost their value. Plus, vintage has become more desirable in recent years.

Vintage bags typically have more character, and with a little repair work, they can be a great investment. You can often find vintage versions of the Chanel Classic or Hermès Kelly at a fraction of the price of a new one.

Short-Term vs. Long-Term Investment

When investing in luxury bags, you can either go for a short-term or long-term strategy.

• Short-Term: You’ll want to buy a bag, give it a little touch-up (repair or clean it), and then sell it quickly for a profit. Look for trends like smaller sizes, specific prints, or vintage bags that are easy to restore.

• Long-Term: You buy a classic, timeless bag, hold onto it for several years (even decades), and wait for its value to increase. This strategy works best for bags from major brands that have only gone up in price over time, like the Hermès Kelly or Chanel Classic.

Conclusion

It’s definitely possible to make money by investing in luxury bags if you know what to look for. Focus on well-known brands, classic models, and timeless colors. Whether you’re in it for the long haul or looking for a quick flip, having a strategy will set you up for success.

Come Check Out Goldfringe
If you're looking to explore more luxury vintage finds, head to Goldfringe, just around the corner from the Atwater Market. It's Montreal's top destination for curated, high-end vintage bags and accessories.