For wealthy New Yorkers, inflation protection is in the bag
Yes yes you box beat inflation!
Savvy, hip shoppers are snapping up Chanel bags and handbags in hopes of keeping their cash from losing value amid skyrocketing inflation.
“My husband bought me one on a business trip and he spent about $5,500 on it, and the price today for that same bag is $8,800,” boasted the lawyer Rebekka Or outside Chanel’s New York flagship store on East 57th Street.
“He bought it three years ago, just before the pandemic hit,” said the Massachusetts resident, whose husband gave her another new bag for her 48th birthday while they were in town.
It’s “a good thing” to see the value of the bags go up, Or said.
A recent report by the Credit Suisse Research Institute, the Swiss banking giant’s think tank, identified bags as one of the luxury items shoppers should purchase “amid heightened uncertainty and inflation”. .
“We find that Chanel handbags, traditional Chinese artwork, and wristwatches offer the best inflation protection, while fine wines, modern and contemporary art, and American and Latino art Americans tend to suffer in high inflation regimes,” the report said. last month, said.
The most expensive bags from the French fashion house – launched by Coco Chanel in 1910 – are a set of four lambskin minis priced at $28,500.
Technical manager Amber S. shops at Chanel four times a month, buying five bags a year.
“I feel like from a consumer perspective, there’s less opportunity to buy things that are appreciating in the market. And I feel like, for me, that’s Hermès, Chanel and Rolex,” said the Upper West Sider, 34.
Jamey Cook, who commutes to the Manhattan boutique from his home in Hoboken and makes an average of one new Chanel bag a year, can also attest to their value as an investment.
“I know the price of one of the bags I’ve bought in the past has gone up dramatically, a Chanel salesperson told me not too long ago,” the former fashion forecaster of 45, who now works in philanthropy. “I bought it in 2017 for $5,000, and she told me it was worth around $10,000 in the fall of 2021. I was quite surprised.”
The city’s luxury resale stores also witnessed the Chanel frenzy.
Tanya Young Williams opened Central Park Resale on West 66th in October and has already had to create a waiting list for Chanel hopefuls, notifying them when new ones arrive.
“You see people who collect Chanels over the years and they want to know what happens because they watch the investment and hear about the price going up and do they want to go back to Bloomingdale’s and pay $800 more for the same stock exchange, so they are talking about a purely economic investment,” she explained.
With increased demand comes increased security risks, said Laurie Perren, owner of Roundabout Resale Couture on Madison Avenue.
“Unfortunately, for security reasons, most bags are kept off premises in a locked safe. It becomes dangerous to keep Chanel in store. This has never been the case and they have always been expensive,” she said.