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Is a designer handbag a good investment?

Last Updated Jan 16, 2016 at 8:00 am MDT

With the current downturn in the economy, Canadians are looking at different ways to invest.

Could putting your money into designer handbags be the way to go?

A new study from baghunter.com thinks so.

According to their research, over the past 35 years, Hermes Birkin bags have increased in value over 500%.

Between 1980 and 2015, the S&P 500 returned a nominal average of 11.66 per cent. Over the same time span, gold offered an average annual return of 1.9 per cent. Hermes bags increased in value nearly 15 per cent every year.

Sounds great, but David Sherlock, portfolio advisor with Sage Investments, has a warning. There are no guarantees someone will actually want to purchase the bag.

“A handbag has no value other than what folks decide their taste is at that given time,” explains Sherlock. “Art is a very good example of this. Art can be a great investment, but many people who’ve invested in art have done very poorly.”

There are better options, even in a tough economy.

“If you pick great companies, and do fundamental work on their earnings and their operations and their people, there are ways to even make money in a down market.”

The baghunter.com study, which was trending on social media this week, can be found here.