Luxury bags vs Luxury watches : Which Asset to Choose?
Investing in pre-owned luxury is attracting more and more investors. Luxury bags and watches offer returns that sometimes surpass traditional investments. But which should you choose? Here is our detailed comparison.
| Criterion | Luxury bags | Luxury watches | Advantage |
|---|---|---|---|
| Average return | 10 — 15% per year (top models) | 5 — 10% per year (top models) | A |
| Liquidity | Very high (Hermès, Chanel) | High (Rolex, Patek) | A |
| Entry point | From 3,000 EUR | From 5,000 EUR | A |
| Risk | Moderate (brand concentration) | Moderate (broader market) | = |
| Maintenance | Careful storage, avoid excessive wear | Watchmaker service every 5-7 years | A |
| Enjoyment of use | Can be carried daily | Worn daily on the wrist | = |
| Range of options | Concentrated (2-3 dominant brands) | Broad (10+ brands) | B |
| Historical appreciation | Explosive over 10 years | Steady over 30 years | = |
Luxury bags
Luxury bags, particularly from Hermès and Chanel, have become genuine investment assets. The Birkin has averaged 14% annual appreciation over 20 years, outperforming gold and the S&P 500 over certain periods. The market is driven by limited supply and growing global demand.
Pros
- Exceptional returns (Hermès Birkin: +14% per year on average)
- High liquidity — fast resale for flagship models
- Enjoyment of use while awaiting capital gains
Cons
- Market concentrated on a few brands (Hermès, Chanel)
- Risk of wear that diminishes value
- Counterfeiting requires authentication expertise
Luxury watches
Luxury watches, led by Rolex, Patek Philippe, and Audemars Piguet, constitute a mature and structured investment market. The Rolex Daytona and Patek Philippe Nautilus have seen spectacular appreciation. The watch market benefits from a long collecting tradition.
Pros
- More diversified market (numerous brands and references)
- Better historical price stability
- Maintainable by manufactures (after-sales service)
Cons
- High entry point for the best references
- Maintenance costs (service every 5-7 years)
- Average returns lower than top bags
Our verdict
Luxury bags, especially Hermès, deliver the most spectacular returns but in a narrower market. Luxury watches offer greater diversity and reassuring historical stability. The ideal strategy? Diversify with both: a Birkin for performance and a Rolex for stability.
Investing in luxury has become an essential topic for investors seeking diversification. Luxury bags and watches offer unique characteristics: a tangible asset, enjoyment of use, and returns that sometimes surpass traditional financial markets.
On the luxury bags side, the numbers speak for themselves. According to the Knight Frank Luxury Investment Index, Hermès bags have outperformed gold, wine, and art over the last decade. A Birkin 25 in black Togo bought for 7,000 EUR in 2018 now resells for around 14,000 EUR, an annual return of over 10%.
The luxury watch market is broader and offers more entry points. A Rolex Submariner Date purchased pre-owned for 9,000 EUR in 2020 is now worth approximately 12,500 EUR. The Patek Philippe Nautilus and Audemars Piguet Royal Oak have seen even more pronounced appreciation.
The main risk with bags is market concentration: only Hermès and Chanel offer solid investment prospects. A bag from a brand that is losing momentum can quickly lose value. With watches, the market is more diversified, but service costs impact net returns.
An often-underestimated aspect is maintenance. A well-stored luxury bag (in its dustbag, away from light and moisture) can maintain its condition for decades at no cost. A mechanical watch requires a complete service every 5 to 7 years, costing up to 1,500 EUR at Rolex.
At HAUTANE, we serve both investors and enthusiasts. Our free valuation service lets you know the current value of your luxury bag or watch. We regularly feature investment-grade pieces selected by our experts.
Frequently asked questions
What is the best luxury bag to invest in?
The Hermès Birkin 25 or 30 in Togo leather, classic colour (Black, Etoupe, Gold), is the best leather goods investment. It shows 10 to 15% annual appreciation and resells very quickly on the secondary market.
Do luxury watches lose value?
Watches from major houses (Rolex, Patek Philippe, Audemars Piguet) hold their value very well and often appreciate. However, watches from less prestigious brands can lose 30 to 50% of their value upon purchase.
Should you keep the box and papers for investment?
Absolutely. A complete set (box, papers, receipt, accessories) can increase resale value by 15 to 30% for bags and 10 to 20% for watches. Always keep all original elements.
Can you use a bag or watch and still resell it well?
Yes, provided you take care of your piece. A bag in excellent condition resells for nearly as much as a new one. For watches, reasonable daily wear does not significantly affect value if the watch is regularly serviced.
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