A luxury expert said a Hermès Birkin handbag could double in value in as little as five years, depending on its condition.
The founder of the luxury resale and authentication platform OpenLuxury, James Firestein, spoke with Fortune about how he has witnessed the resale prices of authentic Birkin bags increase over the years. The resale platform used to sell the Birkin is primarily determined by the bag’s condition, type of hardware metals, and year of purchase from the company. A Birkin sold on eBay won’t be the same as one sold on a notable luxury site like Sotheby’s.
Firestein apprised Fortune that people have made double the profit spent on the Birking they purchased ten years ago by reselling it.
“The resale value of the Birkin and Kely bags, particularly over the past 10 years, has outpaced gold,” he stated.
According to a Credit Suisse and Deloitte report, while the luxury market halted momentarily during the 2020 COVID lockdown, Birkin bag’s results showed an incredible 38% return, better than Chanel’s. It’s why Firestein estimated that 25% of people who purchase a Birkin keep it locked in storage for investment purposes, while 75% of customers buy it to use it.
However, the double price value doesn’t hide the issue that the majority of aspiring Birkin owners have faced. Many, including the wealthy, have to go through second-hand marketplaces to obtain such a luxurious handbag because of the time-consuming and extensive lengths Hermès forces people to go through despite the high demand for their luxurious bags.
According to the Daily Mail, a wealthy TikToker named Audrey Peters shared with her followers that potential Birkin owners must shop frequently with Hermès and establish a relationship with a specific Hermès sales associate. Those requirements apply to the wealthy, middle class, and lower class. The only ones who most likely skirt Hermès’ security measures are big-name celebrities, from the Kardashian-Jenners and Paris Hilton to entertainers like Cardi B.
But that doesn’t mean those interested in owning one can’t have an authentic Birkin. Sotheby’s sold a Himalaya Birkin 30 bag with diamonds for $450,000. They also sell the typical leather styles, which, in mint condition and with alligator or crocodile skin, go for somewhere between $25,000 and $30,000.
Currently, Sotheby’s has a Hermès Rouge Braise Shiny Porosus Crocodile Birkin 30 18K White Gold and Diamond Hardware handbag up for sale, but potential buyers must bid. The current bid for the bag is 400,000 HKD or $50,000.
