A Handbag That Is Better Investment Than Gold

Every woman who adores It bags has been teased about the value of them. But finally, we can show them that the handbags can actually be a very lucrative investment, as it turns out that one handbag is a better investment than stocks or even gold. This uncommon but extremely useful fact needs to be known by every woman – and man. What is this mysterious bag, then? The one and only Birkin by Hermès, of course. The iconic beauty with a fitting history.

Hermès was founded in 1837 by French-German Thierry Hermès. The company started as a harness and later saddle maker in Paris. They won several awards in the business and provided premium quality for the elite and noblemen in five continents. Since the early days, the company was connected to famous people, such as Napoleon, by providing saddle for him. Still today, Hermès manufactures equestrian equipment and prides itself on quality craftsmanships and rich heritage.

Their first bag, ‘Haut à Courroies’ was introduced in 1900 and designed for riders to carry the saddle. In 1922 the first leather handbag, which was a smaller version of ‘Haut à Courroies’, came to the market. In 1935 ‘Sac à Dépêches’, which was renamed Kelly in 1956 after coincidental celebrity endorsement from Grace Kelly, debuted. The silk scarves launched in 1937. Also, the scarves became very popular due to celebrities, such as Jacqueline Kennedy, favouring them.

The iconic Birkin was introduced in 1984. The previous year, in the Air France flight Paris to London, a lady was trying to put her bag on the overhead locker, but the whole contest fell over. A gentleman came to her help, and they happened to sit next to each other. She was Jane Birkin, and he was Jean-Louis Dumas. They designed the perfect bag. Dumas promised a bag for Birkin, with one condition, Hermès could use her name to christen the bag. Birkin also receives annual provision to the charity of her choice.

The rest has been history. The iconic bag has constantly broken records, and in 2016, yet again Birkin set a record price for a handbag at US$ 300,168. The bag was a white Himalayan Niloticus crocodile with 18-carat white gold and diamonds. It was sold to the South East Asian market, which has opened interesting opportunities for luxury brands. It is estimated that only two handbags made of white Himalayan Niloticus crocodile are manufactured annually. It makes it very unique, rare and exclusive.

Birkin has certainly got the attention it has received, as different parties have begun to investigate the value of the icon. The Baghunter conducted a study comparing the values of the S&P 500, gold, and Hermes Birkin bags. The S&P 500 was selected to represent the overall return characteristics of the stock market as a whole, gold was selected as it is the most popular commodity for investors, and the Hermes Birkin bag because it is a collectible and tangible investment. The Baghunter looked into the historical data over 35 year period when Hermes Birkin bags first launched.

The study found that the Hermès Birkin handbags have increased in value year-over-year, with an average annual value increase of 14.2 percent. Unlike the S&P 500 and gold, the value of Birkin handbags has never decreased and has steadily and consistently increased. The handbag’s peak surge value occurred in 2001 when it increased in value by 25 percent, and the lowest increase was 2.1 percent in 1986

Birkin has, of course, highly functional value; it is high quality, durability, pockets and space. After all, it was designed to be the ultimate travel bag. It could be argued, though, that most of Birkin’s brand values are emotional, psychological and social, such as distinctiveness, prestige and style. Wherever the value stems from, it is more stable than stocks and gold.