If you’ve been craving a Birkin bag but felt you couldn’t justify the hefty price tag that comes with it, you’re in luck. According to Baghunter.com, the Hermès item is actually a better investment than gold and even stocks.
Researchers compared these items because they represent three very distinct and popular types of investments, with the S&P 500 reflecting the overall return characteristics of the stock market as a whole. And the 35-year study period was chosen to reflect the date when Hermès Birkin bags were first produced.
Between 1980 and 2015, both the S&P 500 and gold have had significant highs and lows with average annual returns of 8.65% and -1.5% respectively. Conversely, Hermès Birkin handbags have steadily increased in value year on year, never trending downward, with an average increase of 14.2% annually which represents more than a 500% increase since 1980.
“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,” Evelyn Fox, the founder of Baghunter, told 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.”
Baghunter predicts the value of Birkin bags, which can sometimes have a wait list as long as six years, will double within the next 10 years. Better get you one now!