Birkin Bags Are A Better Investment Than Stocks And Gold, Claims Study

January 15, 2016  |  

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If you were looking to invest and had to choose between investing in the S&P 500, gold or a Hermès Birkin bag, you may want to go with the Birkin. At least, that’s what a new study from online luxury retailer, Baghunter, would like you to believe.

According to Racked, the platform compared the returns of the three investments between 1980 and 2015 and found that the value of the Birkin bag has increased by more than 500 percent, and the site predicts that the value will continue to rise.

Unlike the value of S&P 500 stocks and gold, which fluctuate, the value of a Birkin bag has never decreased. What’s even more interesting is that, on average, the bag has experienced an annual value boost of 14.2 percent, which is essentially why Baghunter named the bag “the safest and least volatile investment market” out of the three options.

“In particular, 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,” said Evelyn Fox, the founder of Baghunter, in an interview with Luxury Daily. “There is a difference between luxury and ultra-luxury. While the luxury market suffers during worse economic times the ultra-luxury market is impervious to economic factors that can affect other industries such as high-street retail and stock markets,” she said.

Fox speculates that the exclusivity of the bag is what adds to its value. Women are frequently turned away from the Birkin stores or placed on long waiting lists to purchase the highly sought after handbags.

“The secondary market for Birkins is at an all-time high, with many women who have been turned away from Hermès or are unwilling to wait years for a Birkin instead buying from a trusted reseller,” she said.

While I don’t think I’ll be chasing someone down to blow my credit or life savings on a Birkin bag anytime soon, or ever for that matter, I suppose this is information worthy of being placed in our mental Rolodexes.

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