{"id":695833,"date":"2023-06-16T13:00:00","date_gmt":"2023-06-16T11:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=695833"},"modified":"2023-06-15T17:09:41","modified_gmt":"2023-06-15T15:09:41","slug":"luxury-handbags-are-now-good-investments-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/695833\/luxury-handbags-are-now-good-investments-in-south-africa\/","title":{"rendered":"Luxury handbags are now good investments in South Africa"},"content":{"rendered":"\n

South Africa is currently facing a weak rand against the dollar, high levels of inflation and rising interest rates, which has seen returns from traditional investments come under increasing threat. <\/p>\n\n\n\n

However, luxury items are proving to be a low-risk, high-reward option for investors. <\/p>\n\n\n\n

\u201cInvestors stand to benefit from the robust demand for luxury items locally and globally as evidenced by double-digit growth from the likes of Richemont and LVMH Mo\u00ebt Hennessy Louis Vuitton over the past financial year,\u201d said Michael Zahariev of Luxity, a pre-owned luxury reseller.<\/p>\n\n\n\n

\u201cThe luxury market is resilient to economic turbulence and is even outshining the majority of mainstream investment classes.\u201d <\/p>\n\n\n\n

\u201cFor example, while gold has typically been a popular investment in trying economic conditions, personal luxury goods like the Louis Vuitton Favorite handbag has outperformed this commodity over the past five years with an annual return of 263%. Gold, on the other hand, only returned 67% within the same period.\u201d<\/p>\n\n\n\n

He said that luxury goods do not have any correlation with financial markets, unlike stocks and bonds, reducing their risk and protecting them from economic fluctuations. <\/p>\n\n\n\n

He added that the reselling of luxury goods is also a good investment. <\/p>\n\n\n\n

\u201cAs luxury goods from renowned brands retain their value over time and, in some cases, even appreciate in value, the pre-owned luxury market presents yet another investment opportunity.” <\/p>\n\n\n\n

\u201cIf the 75% increase in pre-owned luxury sales locally is anything to go by, the market is ripe for investment amongst South Africans looking for tangible value, long-term growth potential and a hedge against market volatility.” <\/p>\n\n\n\n

“Not only could the low risk and high returns of luxury investments help to secure their financial futures, this could also equip them with a safety net for navigating the current economic climate.” <\/p>\n\n\n\n

Luxury growth<\/strong><\/p>\n\n\n\n

Luxury brands have had a strong year, with Richemont and LVMH seeing strong growth in the markets – increasing the wealth of their owners increase substantially. <\/p>\n\n\n\n

According to Forbes<\/a>, Richemont’s chairman, South Africa’s Johann Rupert, has seen his net worth climb from $8.9 billion (R165 billion) in 2022 to $11.9 (R206 billion) in 2023. <\/p>\n\n\n

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Moreover, LVMH’s Bernard Arnault has been fighting with South African-born Elon Musk over the last year for the title of the richest person on earth. <\/p>\n\n\n\n

Arnault is currently the second-richest man on Forbes’ list, with his net worth currently at $224.3 billion (R4 trillion). <\/p>\n\n\n

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Read<\/strong>: South Africans are turning to \u2018alternative investments\u2019 \u2013 including solar and crypto<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

In the midst of major economic headwinds, luxury items are proving to be astute investments in South Africa. <\/p>\n","protected":false},"author":95,"featured_media":695869,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[26,12035,4665],"class_list":["post-695833","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-headline","tag-louis-vuitton","tag-richemont"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/695833","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=695833"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/695833\/revisions"}],"predecessor-version":[{"id":696891,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/695833\/revisions\/696891"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/695869"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=695833"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=695833"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=695833"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}