Are luxury goods getting more expensive, or am I just getting older?

[nextnewface]

Well, I have no idea when the next crash will be, because if I did I think I'd be a millionnaire by now But I expect it will come... months, years, who knows? I hope it won't be for a while but I have a feeling it will come in the next few years. I mean, there are signs.... the central bank of Canada just lowered their rate (ugh can't remember what it was... interest rate? It's probably not the same terms in English...) by 0,5% because the stock market wasn't doing too great...

And a change of president would definitely help America's IMAGE. Which you know, could be good for you, because right now, the American way of life is not as idolized as it used to be back in the days. I doubt it will do much good/harm on your economy. Of course putting a stop to the war WILL help your debt (as in, it will stop increasing astronomically), but there is a lot to be done... it would take a really strong economic policy and lots of luck to help the US dollar go back up. But still, you guys really need to pay up your debt and focus on that because interest rates = crazy mad... = even more debt.

Of course all countries are in debt, but some more than others!

Anyway, regarding fashion, prices will NEVER be lower than they are now, because designers won't go down if they are selling at the current pricepoint. Also, with inflation, prices of EVERYTHING are going up, not just luxury goods. however, luxury goods prices seem to be increasing of a greater margin than other goods, and I'm sure various causes could explain that.

So, my point is, unless we go in a major depression and there is deflation involved, luxury goods will not be cheaper in the future than they are now Which is a darn shame...

 

[emma peel]

yeah, very true.

but i wonder if the growth of huge oil/hedge fund/finance fortunes has skewed the "sky is the limit" notion of purchasing so that it's not just about deciding to put your money towards nice things but that these nice things are so much larger a percentage of my income now-- sometimes a handbag is more than a months' rent and my rent is not sooo cheap in nyc!

 

[joiedemode]

^I totally agree with every thing you said nextnewface I do not want to get too political but America seriously needs a new president

Yes...luxury goods will never go down because now they know that they can still sell at such high prices. I do agree with you that their prices seem to be going up at a larger rate than other goods because I think they know that the people who buy luxury goods are more willing to pay higher prices for them than they will for things they need...sounds weird but it is true.

 

[bismarck]

i hate to say it...but i think we are headed for a crash...

I think a lot of us do. Sometimes/often, the US just doesn't make sense. If we're not the largest, most powerful country in the world, we are definitely one of them, and yet we are also the most wasteful and most irresponsible.

Hm...this thread is making me reassess my future. And those expensive handbags aren't looking so good to me anymore either.

And yes, we do need a new President. But I think the 2008 is going to be a close one anyway, even though there are no strong Republican contenders, just because the way this country works.

 

[just_me]

The reason America is in huge dept is because of all the loans banks people keep giving out that could/have never been paid back the government has tried to fix this for a long time, and that's why the stock market has gone into a what is called a correction.. (for those with shares will know, its scary times the FTSE has been all over the place) something had to be done, as we say; when America has a cold the whole world sneezes. :/

I also think is tragic that everyone wants a designer bag nowadays and "everyone" seems to own one, I do understand designers rising their prices in order to not become too common. As exclusivity is one of the driving forces in high end retail.

 

[joiedemode]

Okay this is some what good news that I learned...after the depression the stock market has some thing where they shut down if it gets too low, so it can not crash

 

[Yanka]

Okay this is some what good news that I learned...after the depression the stock market has some thing where they shut down if it gets too low, so it can not crash

Well, that's just dandy

 

[PrinceOfCats]

i never hear that word anymore on the news....
"inflation"...that used to be a term used regularly to describe the rising cost of living when i was younger- probably in the late 70's and 80's...

US inflation has been low and stable for nearly a decade, the rising price of luxury goods is unrelated.

 

[softgrey]

...
what on earth does that chart mean/say poc?...
..

that is complete gibberish to me...
how on earth do you read it and what does it indicate please?

i think people should stop paying these outrageous prices for things like a 'purse'....
$3000 for a purse is not reasonable for the average human...
it is absurd and obnoxious...
it's obnoxious to even charge such a price...
totally f***ed up imo...


and now a lanvin PIN in plastic is $3000 and a Marc Jacobs pin is $2000...
stop the madness!!!...
...

 

[Yanka]

...
what on earth does that chart mean/say poc?...
..

that is complete gibberish to me...
how on earth do you read it and what does it indicate please?

i think people should stop paying these outrageous prices for things like a 'purse'....
$3000 for a purse is not reasonable for the average human...
it is absurd and obnoxious...
it's obnoxious to even charge such a price...
totally f***ed up imo...


and now a lanvin PIN in plastic is $3000 and a Marc Jacobs pin is $2000...
stop the madness!!!...
...

Whaaaaaaat???? Can I see it?

 

[softgrey]

this is it...
i love it...but that $$ is simply not ok...
simply outrageous!...


style.com

 

[seanutbutter]

What website is that from? Does it say anything else about the pin, or is it all plastic? $3000 just seems so outrageous for something simple like that.

 

[Yanka]

Softie,

Oh. My. God.

 

[Grill]

I think we are sorely mistaken if we think we don't hear about inflation any more in the news. Think of the tragedy of Zimbabwe where in the space of 4 years - the price of a loaf of bread has inflated to that of a house. That's inflation in the extreme. based on May 2007 figures. In the UK, house prices are ever increasing particularly in London which is a major problem for the young and the core work force.

Regarding luxury goods, the major price increases being seen in the states are definitely to do with the weakened value of the dollar and to a lesser extent it is to do with the number of super-super wealthy increasing. In other words the geni coefficient is going up (the measure of wealth inequality).

 

[jollyvixen]

If you google "rising price of luxury goods," you'll get some interesting answers to your question.

 

[emma peel]

inflation IS happening, in my unscientific study the cost of things is 3 times what is was since 1990, which is a huge increase!:

gallon of milk in 1990= $1.25
in 2007= $4.00
gallon of gas in 1990= $1.15
in 2007=$3.00
designer handbag in 1990=$500
in 2007=$1500

 

[PrinceOfCats]

that is complete gibberish to me...
how on earth do you read it and what does it indicate please?

You can ignore almost everything because the Bureau of Labor Statistics have averaged it for you. So if you look to the right of the table you'll see the year on year inflation as a percentage. This decade, inflation is low and stable whereas in the past it was higher and more volatile.

 

[Caffeine]

this is it...
i love it...but that $$ is simply not ok...
simply outrageous!...

I totally agree. Although it's not the only outrageous item at Lanvin
Now I think that my Balenciaga jacket is actually well priced compared to the Lanvin pin (just joking...)

In addition to what everybody said, I think that they have to stop the expensive war. What's that for? All our hard making money is being burned for nothing.

 

[Dezzydez]

^you're right, when a bag was €800 two years ago, it's now €1200 here in europe. I think it's because of the 'massification' or democratization of luxury brands. Especially with bags because they are the new status symbols. Luxury used to belong to the privileged few, but now everyone can buy it when they save their money so it has to be more exclusive etc (eg. price increase).

Agreed. Luxury labels now taking the pee with increased prices yet high st fashions is getting cheaper and cheaper??? Blame all the Hedge Fund and Private equity monies and oil families for hiking up prices! but with all the subprime woes coming out of the US, there might be a correction in spending looming....unless Asia takes up the slack and spend until the cows come home. I mean they already do, so the established brands might do ok whatever happens to the world economy.

on another note, speaking to someone who told me about the chinese entrepreneurs in Italy, setting up factories in Italy employing cheap migrant labour - advantage? cuts costs and the goods are still labelled as "Made In Italy" thus commanding the premium price....

 

[m.j.]

please come to belgarde and after u return home, everything will look cheap...