Why Hermès Birkin Bags Are Better Investment Than Gold, Stocks
Did you know that buying an Hermès Birkin bag is a much safer way to invest rather than in the stock market? Well, good news for those who spend their fortunes on these luxury handbags because you are actually making quite a clever move. According to a recent study, investing in these notoriously expensive bags are much better than gold and the stock market since their values just keep on increasing.
The interesting research was made by Baghunter, a luxury handbag platform that compared the investment opportunities presented by the S&P 500, gold and Hermès Birkin bags over 35 years. The luxury handbags selling website discovered that the value of the bags has increased over 500 percent, with an average of 14.2 percent annually, Business Insider noted.
The site also added that the value of the Birkin bags has never depreciated over the years. As a matter of fact, the value has steadily increased. Unfortunately, the values of gold and S&P 500 have fluctuated. As for its average annual increase, gold only has 1.9 percent while the stocks returned 11.7 percent a year.
"The study displays how high-end, rare and sought-after luxury items such as Hermès Birkin handbags have never dropped in value, even during times of recession and economic difficulty," Baghunter founder Evelyn Fox said, as per Us Weekly.
Fox also noted the difference between luxury and ultra-luxury, saying that the luxury market has been struck during the worse financial crisis. The ultra-luxury market, on the other hand, is impermeable to economic factors that can affect other industries such as high-street retail and stock markets.
The Hermès Birkin bags are definitely the most coveted designer purses in the world of fashion. According to Daily Mail, French fashion house Hermès first created the style in the early '80s, when the brand's artistic director Jean-Louis Damas wanted to make a bag for actress Jane Birkin. Since then, they remained as status symbols thanks to the supermodels, Hollywood actresses and singers who flaunted their large collections. And just last summer, Harper's Bazaar learned that a Birkin bag was sold for $221,846 at an auction in Hong Kong.
For an average person, however, obtaining one is next to impossible. Aside from the fact that the price of each bag normally starts at around $10,000, the company has reportedly made it intentionally difficult for people to get the bags, with only a limited supply and a wait list. But at least, these expensive bags make a good investment.
"No one can walk in and buy a Birkin 'from the back'," personal shopping app P.S. Dept. CEO Michelle Goad told Bloomberg. "The key to getting one is to find someone who has a relationship with one of their associates, [which means they've] bought one in the past."
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