I'd take jewellery over a bag ANYDAY. It's only leather for goodness sakes.
LOL but the leather is sooo soft and supple. . .
But I agree with Contessa and Kitsune in some sense. Leather items don't hold up to the test of time as jewelry items do. But if you will find yourself buying another Chanel in the future, I say it won't be cost effective to sell now and buy another later. But if you really, truly, 100% don't want to use or need the bag anymore, then sell it for the Love bracelet. You'll get more use out of it!