Wealth Of Happiness

Stephen Corby takes us on a stroll through the high-end global shopping market where dreams can be bought and sold.

- Stephen Corby

We’ve all done it: with the full knowledge that we are torquing the truth and stretching the term, we have described extravagant purchases of desire as an “investment”.

Take the ubiquitous diamond engagement ring, often described as an investment, even though, at least when you buy it, you have no intention of selling it and collecting a return on its increased value. Common is the man, also, who sticks to the argument that the Porsche he is buying is not just a shiny toy, but a vault-solid investment, despite the fact that most cars depreciate off a cliff the moment you drive them.

The pleasing fact is, however, that if you do invest wisely in luxury items – things that will bring you joy in a way that stocks and shares can’t – you can achieve fantastic returns.

According to Knight Frank’s ‘The Wealth Report 2020’, as markets become more volatile, the ultra-rich are increasingly looking to park their cash in so-called ‘investments of passion’. There is perhaps no better example of describing a heart purchase as a head one than the humble handbag. Andrew Shirley, editor of ‘The Wealth Report’, explains that Kelly and Birkin handbags from the house of Hermès are no longer a desirable fashion item, but “an investment class in their own right”, with some fetching as much as US$300,000 (A$486,000) at auction. “Collectors are prepared to spend hundreds of thousands of dollars on the rarest or most desirable bags,” Shirley said.