'Collectable handbags' takes top spot in Knight Frank luxury investment index

New entrant 'Collectable handbags' has topped the Knight Frank Luxury Investment Index (KFLII), rising in value by 13 per cent over the 12 months to Q4 2019, knocking rare whisky off its number one position.

In the first index dedicated to tracking the burgeoning market for collectable handbags, Art Market Research (AMR) -- which supplies much of the data for the KFLII -- delves into the world of this emerging asset class.

For KFLII, the focus was specifically on collectable handbags made by Hermes and shows that prices have more than doubled in value over a 10-year period (108 per cent growth).

Sebastian Duthy, Director of Art Market Research at Knight Frank, said although bags made by other luxury brands like Chanel and Louis Vuitton are also highly collectable, it is those made by Hermes that attract the highest prices and are considered the most desirable.

The index results show that on an annual basis, handbags outperformed both whisky and art which both recorded growth of 5 per cent. Classic cars, another strong performer in recent years, slipped 7 per cent.

Overall, KFLII, which is a weighted average of each asset class, fell by 1 per cent.

However, over a 10-year period, it is a different picture. Rare whisky continues to top the charts rising 564 per cent followed by cars (194 per cent). KFLII rose by 141 per cent.

Results of The Wealth Report Attitudes Survey 2020 show that most ultra high net worth individuals are planning to retain or increase their allocations to luxury collectables.

"As with other investments of passion like rare whisky, whose value has risen sharply in recent years, handbags are increasingly being seen as an investment class in their own right as well as highly desirable fashion accessories," said Andrew Shirley, Editor of The Wealth Report and the Knight Frank Luxury Investment Index.

"Collectors are prepared to spend hundreds of thousands of dollars on the rarest or most desirable bags," he said.

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