Mom and Dad may have given you some bad financial advice growing up, because it turns out the best investment you could make is not in gold, property or stocks – but a bag. A very special handbag by luxury French design house Hermes has been proven to hold value and give better resale returns than your more traditional investment goods.
The Hermes Birkin bag was first released in 1983. The head designer was seated on a flight next to the actress Jane Birkin, who informed him of her struggle to find a great leather weekend bag, and so the Birkin was born. It’s iconic structured shape and turnlock closure have had very little change over the years and it has become the ultimate symbol of wealth and exclusivity.
The luxury accessory resale website Bagfinder has estimated that the Birkin has increased in value by 14.2% since its first emergence, which is massive in comparison with gold’s measly 1.3% increase over the same period.
So – are you thinking about making an investment? That is where it gets tricky. Birkins range from $60,000 to $200,000 and Hermes has restricted supply to such a small number that you have to be on their waiting list for a period of up to 6 years to get your hands on one! The tiny supply compared to the crazy high demand has continued to drive the price up, and they manage to maintain their value even in resale.