Designer Handbags: Recently, a designer handbag affectionado sold her two Chanel Classic lambskin bags for what she paid for them SIX YEARS AGO! How is this possible?
No, it wasn't a swindle, just a very smart business move.
By now, its common knowledge that the U.S. dollar is devalued compared to other currencies. This spring, the dollar has dropped to roughly $0.63 ?, the lowest it has been since the euro was introduced. We can see its effects on the handbags we know and love. The Chanel Caviar Jumbo Flap bag sold for just $1695 in 2006 when the price jumped to $2495 in 2007, only to rise to a current high of $2650 in spring of 2008. This translates into a 56-percent increase over just two years! Louis Vuitton has also followed suit, with the price of their popular Manhattan GM jumping from $1540 in 2005 to $2100 today! Due to these designers' multiple price increases over the past few years, it's no wonder that there are continuous rumors of hikes on the horizon.
But don't get discouraged! Just because your dollar doesn't go as far when purchasing these designer masterpieces, it doesn't mean there isn't a silver lining. In fact, the higher price can work to your benefit. Tracking this history of the dollar with the European Central Bank shows the dollar had declined steadily since 2001, so it's a reasonable guess that this trend will continue. That means the dollars you spend today are likely to be worth more than the dollars you spend a year from now. Therefore, by purchasing the Chanel Grand Shopping Tote you're fawning over now and carefully carrying it for a year, you can turn around and resell it in 2009 for just as much as you bought it for! Any depreciation to the bag will be nullified by the devaluation of the dollar.
So go ahead and fill your closet with the Gucci, Fendi, and Balenciaga purses you've been dreaming of. Even in today's downturn economy, they are still a wise investment.
From Bags To Riches