Why invest in gold when you can buy a Birkin? Thanks to its exclusivity and its status as an “investment object”, the value of this iconic bag is much higher than its price. This is assured by James Firenstein, founder of the resale and authentication platform for luxury bags and accessories OpenLuxury: «The resale value, particularly of the Birkin and Kelly bags, in the last 10 years it has surpassed that of gold», he explained to Fortunes.
This is partly because not everyone can buy this type of bag: Only loyal Hermès customers are offered the opportunity to purchase a Birkin or Kelly. AND not even they can choose exactly the model they want: The brand allows boutiques to purchase a select number of Birkins per season and, second Sotheby's, the style of the bags is difficult to know in advance. This Hermès Game it only increases the desire to own the bag: in an attempt to evade this “game” and get the object of their dreams, customers are willing to shell out tens of thousands of dollars.
“I know of several cases where people have doubled their money by buying these bags 10 years ago and reselling them today in perfect condition,” confirmed Firenstein, who said 75% of buyers use them, while the remaining 25% keep them as investments. «It's like buying a Picasso and keep it at home, because you can watch it and enjoy it. Then in a couple of years you trade it for something else.”
The value of an Hermès increases depending on the color, material and condition. Second hand demand is very highalso because it offers shoppers more options than the Hermès store, where customers are only rarely able to get exactly the model they want.
The most significant price increase that Firenstein recalls was that of a Birkins Black Togo 30which has doubled in value in five years. The price of this model varies depending on the condition of the bag and the year in which it was purchased by Hermès: from 30,500 dollars for a “like new” one on Sotheby's at 10,925 up TheRealReal or about 8,000 on eBay. But prices can be influenced by trends and changes in demand: it is always a kind of “gamble”. Usually, however, it takes a decade for the price of a Birkin to double. But it's safe to say that the unique appeal, incredible demand and low supply give these bags incredible market power.
Source: Vanity Fair
I’m Susan Karen, a professional writer and editor at World Stock Market. I specialize in Entertainment news, writing stories that keep readers informed on all the latest developments in the industry. With over five years of experience in creating engaging content and copywriting for various media outlets, I have grown to become an invaluable asset to any team.
