Designer handbags, particularly iconic models from brands like Hermès and Chanel, are highly sought after and tend to appreciate in value over time. For instance, the Hermès Birkin bag has consistently outperformed the S&P 500 and gold in terms of annual returns.

  • Designer handbags: Hermès Birkin bags have shown annual returns of 14.2%, outperforming traditional investments like the S&P 500​.
  • Luxury watches: Brands like Rolex and Patek Philippe are excellent investments. For example, Rolex Submariners can retain up to 154% of their resale value, while Patek Philippe watches have seen auction prices soar​.
  • Fine wine and rare whisky: Rare whisky has seen a significant rise over ten years, making it a lucrative investment​.

An example of luxury goods in economics includes items such as designer handbags, luxury cars, high-end watches, and fine wines. These goods are characterized by high income elasticity of demand, meaning their demand increases more than proportionally as consumer incomes rise. For instance, when incomes go up, people tend to buy more luxury cars like those from Porsche or high-end watches from brands like Rolex and Patek Philippe​​. These goods not only symbolize status and prestige but also often have a significant impact on the economy through job creation and high-value trad

Top luxury assets include designer handbags from brands like Hermès and Chanel, which often appreciate significantly in value. Luxury watches, such as those from Rolex and Patek Philippe, are also excellent investments due to their rarity and timeless appeal. Additionally, fine wine and rare whisky have shown substantial growth, with rare whisky increasing by 586% over the past decade according to the Knight Frank Luxury Investment Index ​.