July 5, 2024
Market Update 05-07-24
Happy Friday everyone!
As promised last week we’re back with our Friday newsletter, now with a different format to reflect what we’ve been working at Lympid 📰
Image of the week 👜💰
Fact for the week 🤔:
🤔 Well, as usual we start with an interesting fact combining both finance and real world events. And this time with our theme, the luxury handbags. So you might not know but the Hermès Birkin handbag was created and tailored for the famous actress Jane Birkin in the 80’s. More than 40 years now, the Birkin handbags are a sign of extreme wealth, even being considered as a better investment than gold! 💎
Onto this week’s updates 🚦
🔴 Counterfeit Concerns 🚨
As with almost all clothing and luxury goods, the luxury handbags items are also increasingly targeted by actors doing high-quality fake items to also respond to the demand for purchases from people who, although not having the money to buy the real ones, still want to have a copy and thus claim ownership of these products. Of course that when you’re talking about a product that can also be an investment option, high-quality fake products, often difficult to spot differences in the usual investors eye, poses huge risk for these investors, making it necessary to have a reliable partner, with expertise in such topic, to source original products also from trusted and verified sellers. This is crucial to maintaining investment value. 🚨
🟡 Moderate Liquidity 💧
Although the luxury handbag market - in a similar way to luxury watches - has shown exponential growth, it still remains less liquid compared to more traditional assets like stocks, bonds or gold. This poses some risks to investors that need to be aware that, if wanting to exit the investment, it may take longer time than traditional financial markets, not counting also the fact that, due to being a fashion item, trends might dictate whether the asset is able to maintain its value and strong demand. Nevertheless, increasing numbers of millionaires and billionaires, often looking for consumer goods of high end quality, make this market resilient and with good prospects for growth and appreciation, given the growing policy also followed by brands of exclusivity and cutting supply. 💰
🟢 Boom for Hermès and Chanel 🚀
When it comes to Hermès and Chanel handbags, investors have learned to take the topic seriously. Just in 2023 alone, Hermès Birkin bags increased in value by 13%, followed by Chanel as the front runners as what investment concerns. This trend has long been observed and consolidated reflecting now these assets as serious portfolio diversification alternatives. A strong demand and limited supply is also ensuring an impressive secondary market activity with consequent high returns for investors. 🚀
🎬 As you can see, luxury handbags offer high returns and inflation protection, making them a valuable addition to a diversified portfolio, but as always due diligence is essential.
And you can always find us at lympid.io ✅
Lympid: Revolutionizing investments for everyone.
Talk next week 👋
