Ultra-Rich Clutch $191,000 Bags for Comfort as Wealth Shrinks

Aw, isn't this heart-warming?

http://www.bloomberg.com/apps/news?pid=20601093&sid=adh_ahXmy0xE&refer=home

By Sara Gay Forden and Cotten Timberlake

Dec. 5 (Bloomberg) -- The black crocodile Birkin handbag displayed at Hermes SA’s Milan boutique in October was one of a kind, with a diamond-studded clasp and a 150,000-euro ($191,000) price tag. It had already been sold.

In Tampa, Florida, Gucci sold a pair of gold and topaz earrings for $73,000, the price of a small suburban house. Also in the U.S., Bottega Veneta sold a $75,000 crocodile Cabat handbag and a $61,000 gold-link necklace.

Some wealthy shoppers continue to splash out on exotic-skin bags, fine jewelry and custom-made pieces while the U.S., Japan and the 15 European nations using the euro slip into a recession, cutting the value of their assets. Their purchases may offer some consolation to the 175-billion-euro luxury goods industry bracing for the worst holiday shopping season since the Sept. 11, 2001, terrorist attacks.

Most people worth at least $30 million “are not facing a personal liquidity crisis and expect to spend as much or more this holiday season than they did last year,” said Russ Prince, the president of Prince & Associates Inc. The private-wealth researcher surveyed 518 people, each of whom own at least one jet.

“They aren’t cutting back because of some kind of moral rationale,” Prince added. “They don’t feel guilty about spending.”

Sales of luxury goods at Milan showroom Winwood have grown 20 percent this year on repeat orders for items such as Nancy Gonzalez crocodile handbags, which start at 1,500 euros, said owner Morena Zabeni. “People with money either want Hermes or something that isn’t recognizable.”