The Birkin Bag: A Better Investment Than Stocks

 The Birkin Bag: A Better Investment Than Stocks 

Written by: Paige Foster 

Launched in 1985, the Hermes Birkin Bag quickly gained its status as one of the highest quality and most sought after purses worldwide. Prices range from $10,000 to $380,000, and the waiting period to get a new bag is over six years long. With demand so high and supply so low, the Birkin Bag is the epitome of a status symbol for the rich and famous. Birkin Bags only increase in value over time (with proper care), making them a viable alternative to stocks or bonds. When you own a Birkin Bag, unlike owning a different luxury item (such as a Ferrari which looses value as you increase its miles), it will only appreciate in value once you own it, as the demand remains high, and is predicted to remain high. 

These bags only increase in value over time, as they are repairable for life, and very rarely look worn or used. Last year, the value of Birkin Bags increased by 17% according to the Knight Frank Report, beating out collectible cars, art, and wine. Over the past 10 years, the bags have doubled in value (up to 108%!) quickly outpacing gold’s value increase rate of only 29%. The return you can receive off of a Birkin exceeds the annual returns of stock markets (such as the FTSE All-Share Index). The average annual value increase of a Birkin (over the past 35 years) is 14.2%. Unlike gold, the value of Birkin Bags have never decreased, and have consistently increased. 

Apps like Rally Rd have created a platform where, if you can’t purchase a full Birkin, you can buy a share in one to sell at a later date for profit -- very much like the stock market, but with a physical purse. This program has proved to be very lucrative. Although investors don’t get the pleasure of owning and using a Birkin Bag, they are able to earn profit. Shares will be traded until the owner of the marketplace decides to sell the asset. 

Birkin Bags are a great short-term investment or a long-term investment, as they have (so far) never depreciated in value, unlike the S&P 500 (Standard and Poor’s 500 -- a stock market equity index). If one decides to invest in a Birkin, long term investors should look for neutral colors, whereas short-term investors can look at new/seasonal colors, and the return will increase at a faster rate if the skin is exotic. There are a plentitude of faux bags circling, and it is essential that research is done and the bag is examined by a professional prior to purchase. 

If you have the money and status available to purchase a Birkin Bag, jump at the chance. The return on your investment will be worth it, and Birkin Bags can be passed down through generations. If you are not offered the opportunity but have the funds, a credible second hand store to purchase from is TheRealReal, where you can get a professionally certified bag.

Works Cited

Arutyunyan, Vladimir, et al. “Birkin Bags Make for Better Investment than Gold or Stocks, Per New Report.” The Fashion Law, https://www.thefashionlaw.com/birkin-bags-make-for-better-investment-than-gold-or-stocks-per-new-report/. Accessed 2 May 2022.

Hale, Kori. “Has Culture Made Investing In Hermès, Just As Lucrative As Investing In Art?” Forbes, 2021, https://www.forbes.com/sites/korihale/2021/03/04/has-culture-made-investing-in-herms-just-as-lucrative-as-investing-in-art/?sh=6a12bb5d3947.

“Handbags were the hottest investment for the rich last year.” CNBC, 4 March 2020, https://www.cnbc.com/2020/03/04/handbags-were-the-hottest-investment-for-the-rich-last-year.html. Accessed 2 May 2022.

“Hermes Investment Guide.” Baghunter, https://baghunter.com/pages/investment-guide. Accessed 2 May 2022.

John, Tara. “Why The Hermès Birkin Bag is a Better Investment Than Gold.” TIME, 15 January 2016, https://time.com/4182246/hermes-birkin-bag-investment-gold/. Accessed 2 May 2022.

“RealReal Handbag Expert Explains Why Hermès Birkin Bags Are Expensive.” Business Insider, 30 June 2021, https://www.businessinsider.com/hermes-birkin-bag-realreal-handbag-expert-so-expensive-2019-6. Accessed 2 May 2022.

Sullivan, Paul. “Can't Afford a Birkin Bag or a Racehorse? You Can Invest in One (Published 2020).” The New York Times, 31 July 2020, https://www.nytimes.com/2020/07/31/your-money/birkin-bag-racehorse-invest.html. Accessed 2 May 2022.