Have Luxury Prices Risen Too Far?

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Dec. 24 (Bloomberg) -- Harrison Group Vice Chairman Jim Taylor and Bloomberg Contributing Editor David Kirkpatrick discuss the price of luxury goods on Bloomberg Television's "Bloomberg Surveillance." (Source: Bloomberg)

I don't think he gave a pot to what he said in a moment he said it.

I don't think louis vuitton is irritated about the fact that they have a deal on one side and you scorching the brand on the other side.

I'm not sure that it has any real impact.

The strongest luxury brands have tried to fix her balance sheets by getting prices up to what they would've been like that had not cut them back in 2009. that is interesting because the story we keep telling every day is about retailers cutting prices.

Americans holding out for bargains.

The people you track really don't care.

The worlds of affluent shopping is split into people who are dedicated to looking for deal but another group of people, almost half the market are looking for something they call worth, which means extraordinaire quality, service, artistic amplitudes.

Those sorts of things.

That side of the market is not so concerned with discount as you're concerned with the true essence of the product.

Hermes has been a big winner in this process.

Source private aircraft and automobiles.

It is interesting where the money has gone.

Calexico is back to that idea of experience reigning supreme.

This is an idea that is crossed over into retail.

Experience matters more than the price you get it out.

I would love to make a point that takes it further.

It was more to the people who aren't shopping.

I have a theory as to why people are not spending as much at the tail holiday.

That is because these devices are sucking so much value in from all of us and they're so exciting to own the people increasingly don't feel they need a lot of other consumer products.

If front pay speech page piece in "new york times" is saying that three and four-year-olds are asking for devices.

If you're talking high-end, if you're talking about that altra one percent.

, their care of that handbag is 1000 or $20,000. the one percent is got a shock in 2009 unknown is got over it yet.

What sucks the oxygen out of the market is a 35% savings rate of the top.

That 12% in 2006 and the 35% now, the fines would equity markets and the rest of it is going into savings.

We passed the $7 trillion point in cash savings.

There is a hundred billion dollars in checking accounts are now as opposed to 100 billion in 2007. huge amount of money sits there and waits for something interesting to do with it.

A lot of fascinating things in your survey.

The number one gift that always rich people are buying is gift cards.

Yes, because your teenagers are happy with them.

Your aunt separate them.

You have an control the agenda for shopping.

You don't know what they really want.

The interesting thing between men or women come a where men can predict what women want pretty well, women are in some ways offended by what men really want.

Women are offended tackle why, what do they really want?

Blues, electronics and toys.

You want to give us a new tie-in books.

Sensible objects and things that don't disgrace household.

My husband just wants me to call him less.

I have a question about your survey because you do talk about the rapidly growing dominance of the one percent and how income disparities have grown tremendously.

You people with this kind of money to spend in your survey expressed any regrets or doubt or guilt about how much they have and how little other people have?

95% of the wealthiest americans grew up in the middle class.

They've all got brothers and sisters that didn't make it like they did, so they all experience a lot of pain from the distance, the social distance between themselves and others.

The first thing that happens when you get your first liquidity event is the phone call from aunt or uncle needing a loan.

There is a certain amount of guilt is probably the wrong word, annoyance, and then the desire not to be fingered publicly for their assets.

So stealth wealth, the desire to keep it under the table is a significant part of this life.

Therefore, one of the things we're seeing is that for example the return of the second house.

That is not very stealthy.

No, it can't be seen.

To build the house on christo harbor in st.

Kitts, it can't be found.

There's a way you can materialize good spending without having it to become something that gets you fingered . what about gilt?

Now you can get a good she andhermes.

65% is now shopping online.

We have this national garage sale going on line on ebay with really significant objects.

Then if you go to basel or the significant auctions, it is surprising how much money is being spent typically on things that are really worth it very first-class picassos are nine figures now.

Lousy ones are still 20,000 bucks.

One of the high points it does get discussed that much is first dibs which is a really high-end antiques website like and ebay for rich people.

Everybody wanders around with a mental awareness of how much your stuff is worth.

Is it any impulse to charity among these people?

With seen a decline in the extent to which people feel engaged with their community as his clasping has begun.

That is bad.

Are continuing to donate, but the proportion of income that is donated by middle-class people is far greater than the proportion of income unaided by wealthy people.

The bill gates programs at all that notwithstanding -- there are some great philanthropists) new york city.

Now it is time, we want you to send us your responses to the trivia question of the day here on "bloomberg surveillance." what is you go to store for last-minute gifts and why.

Read us@bsurveillance.

To take your cue from david

This text has been automatically generated. It may not be 100% accurate.

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