 I recently bought my first ever Chanel bag and to be honest, I was shocked how expensive it is. $7,280. A lot of people say that buying a Chanel bag is a good investment because they say that Chanel bags retain in value and in fact, some of them even appreciate in value over time. But is it true? Or are there better ways for your money to work harder for you? Let's find out in this video. Hi, everyone, this is Chloe, the alligator investor and welcome back to my channel. We're all in one place for you to learn about investing stocks as well as options. If it's the first time of you coming to my channel, remember to hit the subscribe button as well as the notification bell so that you will not miss out any of my future investment updates. An early thumbs up is also appreciated because it will tell you to algorithm that you find this video helpful and in return, I will share with you whether is it the right time to buy Chanel bag as an investment right now. It is undeniable that Chanel is one of the most highly sought-after brands in the world and some of the bags have tremendously appreciated in value over time. After I bought, I went to search online how much can a Chanel bag appreciate and I was surprised that it can help me to beat inflation. Historically, for the last 30 years, the US inflation rate was about 2% but if you have invested your money with a Chanel medium classic flap, the bag has appreciated in value from about $1,000 in 1990 to $8,800 in 2021. That's a 7% compounded year-on-year return. Pretty amazing, isn't it? And if you have bought a small classic Chanel handbag bag in 2019, the selling price back then was $5,200 and if you held on to it till last year, you could have sold it at $8,500. That's a whopping 60% percent return in 3 years. However, I think it's important not to jump into the investment decision quickly just because of the short-term lucrative return because if you overpay for anything, your investment is likely to suffer. Think about it. The reason why Chanel and all those luxury goods have appreciated greatly in prices in the recent years is mainly due to the supply chain disruption as well as the travel restrictions brought by COVID-19. With lesser goods available and yet the demand remains to be high, it's natural for companies like Chanel earnest to increase prices to sustain the profit margin. However, with COVID right now becoming a norm and borders reopening again from China, the demand and supply scale will eventually come back to balance. So in my opinion, it's unlikely that these luxury goods items will continue to go up tremendously in prices. So if you buy a Chanel bag right now with $7,000, your risk is a lot higher with limited upside. Plus after buying it, you always have to maintain it to make sure it's in a good condition so that there is resale value, which can be a hassle for certain ladies, including me. That's why I think you should think twice before buying a Chanel bag for investment. And if I were to be given a chance again, where would I spend my $7,280? Without much hesitation, I would put it in the stock and options market. Why? Because the stock market is made up of businesses that strive to improve human quality of life. For example, we buy Apple products because we believe in the quality. We use Facebook and Instagram so that we can connect with friends. We drink Coca-Cola in a gathering party. All these businesses are here to improve our standard of living and as the economy continues to improve, these businesses will make more money in the future. And just like what Warren Buffett said, when the business does well, the stock will eventually follow. And that's why the stock price of all these businesses have appreciated in value tremendously over the last 10 years. And if you look at the broad US market, it has been giving investors close to 10% return for the past 30 years. If it invested $1,150 back then, the same amount of money that you have used to purchase a Chanel bag, your $1,000 will have now become over $19,000. More than double of what the Chanel bag can make for you. Plus, if you know how to use options, your return will be accelerated even more. And that is why this is exactly what I am going to do. Instead of paying $7,000 for this Chanel bag, I will use the same amount to do BOSS option strategy on an ETF called SPYG, which consists of the largest 300 companies listed in the US, including Apple, Microsoft, NVIDIA, Tesla and more. And historically, this ETF has given investors over 13% return for the past 10 years. Pretty amazing, hasn't it? And by doing BOSS option strategy, I am selling a poop option and in return making a promise to buy 100 shares of SPYG at $53 each. So my investment capital needed is $5,300 USD, which is equivalent to $7,000 Singapore dollars. And by doing so, I'm making a passive income of $80 to my option trade, which is close to 1.5% return in 24 days. That's equivalent of 18% return in one year. As you can see, options is really powerful. However, before you quickly jump into options, it's important for you to get yourself educated first so that you know exactly what you are doing. So if you want to learn how to use options to profit safely in this current market condition, then do join us in our upcoming free-to-hour next-level options masterclass to learn three different option strategies for you to profit in different market conditions. All you have to do is click on the link around this video and register for your free spot. And if you are not a fan of ETF, you can even consider investing your money with individual luxury goods company, such as LVMH, Hermes and more. Unfortunately Chanel has not listed. If not, I would love to invest some of my money in Chanel as well because this company has pricing power regardless how expensive the bags are. There are always customers queuing to buy them. In fact, if you have been following me in my Telegram channel, last June I shared about LVMH and the stock price since then has gone up over 40%. So if you took action together with me back then, you would have seen some handsome profits maybe potentially exchanging for a free LV bag. But nevertheless, I'm not going to take out my profit so fast because I still prefer investing in the company than buying the bag itself. If you want to receive more investment updates, make sure to join my Telegram channel via the link below and it's free. Lastly, I also want to reveal the truth that I didn't buy this bag for myself. In fact, it's for my cousin. That's why I don't dare to tell Ben the rapper because it's a gift for her. In my opinion, she didn't buy this Chanel for investment. Instead, it's more for her own personal enjoyment. But ladies, regardless whether you love luxury handbags or not, I think it's still important for you to learn investing so that your money will work harder for you especially in this rising inflationary environment. And with your profits coming in, you can then decide to take out some of it to buy a free bag instead. I hope this video has inspired you to get started in your investment journey. Feel free to check out some of my videos right here to continue your learning journey. Make sure to join my Telegram channel via the link below as well. And with that, I will see you in the next video. Arigato.