Can a $10 million bra predict the market?
Prices of the Victoria's Secret garment tend to track the S&P 500. This year's is the most expensive since 2005.
By Katie Little, CNBC
Likely the world's most expensive brassiere produced this year, the Victoria's Secret Fantasy Bra is the highlight of the brand's annual fashion show, which kicks off the holiday selling season on Nov. 13.
This year's bra and belt (pictured) are handset in 18-karat gold and feature a 52-carat pear-shaped center ruby, plus more than 4,200 precious gems, including diamonds and yellow sapphires.
Victoria's Secret Angel Candice Swanepoel will be given the honor of modeling the bra at its public unveiling. The retailer is owned by L Brands (LTD).
The undergarment's eye-popping price is the highest since 2005. Prices for the retailer's Fantasy Bras plunged during the recession and were a mere fraction of those during the early 2000s, which prompts a question: Is the Fantasy Bra an indicator of economic or market trends?
Interestingly, prices of the Fantasy Bra tracked the Standard & Poor's 500 Index ($INX) higher and lower from 1996 to 2005 (with the exception of 2003) and again in 2009 and 2013.
So market watchers may want to debate its merits along with those of the "hemline theory" attributed to Wharton economist George Taylor in the 1920s. (Under that theory, women wear shorter skirts during good times and longer ones during bad ones.)
Before the bra hits the runway, CNBC reached out to Victoria's Secret to go behind the bra and find some interesting tidbits about this year's megamillions undergarment.
The manpower involved: The bra took 527 hours to complete, or nearly 22 days, with help from 14 craftspeople.
Selection process: Victoria's Secret executives pick the Fantasy Bra model and design in May. The fitting process for the undergarment begins at the end of May, nearly half a year before its catwalk debut. The brand works with many fine jewelry designers, a list that can vary from year to year.
Measuring up: This specific bra required a body cast to be created to ensure perfect measurements.
And the lucky buyer is: No one typically, because most bras are eventually dismantled. So far, only one bra, last year's $2.5 million one, has found a buyer. Victoria's Secret declined to reveal the name of its owner.
This year, the bra will be held for a year and will be available for purchase during that time.
Watch this video for more about the bra:
Some people take everything so seriously!! This bra is not taking anything away from cancer research and it is not the rich rubbing it in our faces, it is a fantasy. I would feel differently if every rich person were buying one and wearing it but come on, do we all really need to be this jaded? Lets all save our anger for something that deserves it and welcome the new season with fantasy, delight and good cheer.
Everyone have a wonderful, loving holiday season, whatever you choose to celebrate!
Am I supposed to care about a $10m bra?
I don't buy bras at Vickys because they are overpriced and do not last, even when they are washed by hand.
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