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Hermès Birkin Handbag Makes Better Investment For Long-Term Investors Than Gold, Study Shows

By January 17, 2016 at 2:11 am
Hermès Birkin Handbag Makes Better Investment For Long-Term Investors Than Gold, Study Shows (Photo : Timur Emek | Getty Images Entertainment)

FRANCE - It seems like Lego is not the only investment that is better than market shares as recent study shows that a Hermès luxury handbag is also a better long-term investment than gold.

But this isn't just any kind of Hermès bag. The study talks about the Hermès Birkin handbag, which is considered to be the most wanted bag in the world. It costs about £150,000 or about $214,000 when it's still new.

According to the research study published in the bag retail website Baghunter, the luxury handbag has an average annual return of about 14.2 percent, which beats the return values of gold and U.S. benchmark S&P 500 index, from 1980 to 2005.

Furthermore, the value of Hermès Birkin bags has not had signs of decreased fluctuations. It has been consistently and steadily increasing through the years. It is even projected to double the their value in 10 years.

According to records, the bags had the highest value increase in 2001 when it went up by 25 percent while the lowest was in 1986 when it had only gone up to 2.1 percent.

Apparently, the extravagant price of the luxury designer bags is justified since Birkin bags are only produced in limited quantities. They are not even advertised to maintain their scarcity and are only made available for special clients like celebrities Kate Moss, Victoria Beckham and Pharrell Williams, according to The Guardian.

"As a status symbol for the elite and ultra-rich, the main factor affecting the secondary market for Birkins is desire," Baghunter said.

"The exclusivity of the bag along with the difficulty in purchasing one brand new from Hermes means 2016 begins with demand far outweighing supply on the secondary and investment market for Birkin bags."

Despite having a consistent increase in value and a very good long-term investment for investors, Hermès Birkin handbag is already, in itself, a very expensive piece of accessory even without the 18K white gold and diamond hardware, making it difficult for anyone to actually own one.

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