With banks offering very little to savers at the present time, being unsure about where to invest your hard earned cash is a fairly common problem nowadays. With luxury brands reporting healthy rises in profits this year, it could prove provident to buy shares in the well-known brands associated with luxury lifestyles and wealth. 

With the so-called rise of the middle-classes in countries such as China, India and Russia, luxury brand names are reaping the benefits of the eastern “nouveau riche”, seeking the trappings of a wealthy western lifestyle.

According to the Hurun Wealth Report 2010”, this year China saw a 7.8 percent increase in its number of billionaires, and has the second largest number of billionaires in any country behind only the United States. The report also concluded that the number of millionaires in China had also risen sharply, and the average age of Chinese millionaires was just 39-years-old.

Whilst Asian tourists buying luxury brand names on their visits to Europe and the US make up a large proportion of the sales of luxury goods, internet auction sites such as Ebay are also proving a popular place to buy authentic luxury brands.

Whilst many shares may have plummeted in recent months as companies are unable to ‘shake off’ the repercussions of the recession, many luxury brand names are seeing the shares soar.

Why not become part of the action?has enjoyed healthy profits this year and is open about welcoming foreign investors. Talking of France’s luxury mega group, Henk Pott, equity analyst for Barclays Wealth said:

“We view LVHM as a core holding in the luxury goods sector owing to its strong management team, high-quality brands, and significant earnings growth potential in addition to its recent acquisition of a stake in Hermes.”

Mr Potts added that investors should not be put off from buying shares overseas. “Many execution-only brokers, including Barclays Stockbrokers, will allow you to buy stocks that are listed overseas” he said.

From east to west, with the growing desire to be seen with the latest designer handbag, drinking only the finest of whisky or donning a wholly exquisite luxury watch, now might be the time to invest your money in an industry where the recession is most definitely over.