Stop investing in the stock market and start investing in handbags. The appeal of these high-end handbags, signed by Hermès, Louis Vuitton and Chanel, lies in their exclusivity, status and surprising profitability. While stocks and gold have experienced ups and downs, Birkin bags have steadily increased in value on the secondhand market.
In times of financial volatility, luxury handbags—particularly the Hermès Birkin—have positioned themselves as an investment asset on par with fine art, high-end watches and classic luxury cars. According to the Art Market Research report, luxury handbags have evolved over the past two decades from accessories to what is now “the only female-focused collectible category.”
Scarcity marketing. This investment model is supported by something as basic as the law of supply and demand. Like most luxury brands, Hermès follows a strategy of deliberate scarcity, with minimal production of its pieces—in which, curiously, the brand chooses which products to sell to customers.
The high demand for these items leads to waiting lists of up to six years. The perception of exclusivity increases the desire for the product, which drives up its value on the secondhand market once it leaves the store. This is a fairly common phenomenon. An example is the launch of the Sony PS5, which arrived in stores in dribs and drabs and doubled in price on the secondhand market. Another example, at a different level, is the Ferrari Purosangue.
More Birkin, less gold. Experts consider the Hermès Birkin one of the best investments in the world of luxury, outperforming even traditional assets such as art or gold in terms of profitability and stability. A 2020 study by Credit Suisse and Deloitte found that the value of a Birkin rose an average of 38% that year, far surpassing the S&P 500, which rose 16.3% over the same period.
A 2016 study by Baghunter compared the value of Hermès handbags to the S&P 500 and gold since 1995. It found that Birkin’s financial performance was much more stable and profitable than the stock market index and the value of gold, with a less volatile market and higher year-over-year returns. While the S&P 500 had an average annual return of 8.65% and gold only 1.9%, the Birkin showed an average yearly increase of 14.2%.
A secondhand Birkin costs from $9,000 to $200,000. As in the market for luxury collector watches, high demand for certain Birkin editions has led to spectacular appreciation. A Hermès Birkin typically costs between $9,000 and $12,000, but depending on its rarity, condition and materials, it can fetch up to $200,000 at auction or on specialized platforms.
In 2015, a pink crocodile-skin Birkin sold for a record $223,000, cementing the bag’s reputation as a high-return investment. The most expensive Birkin ever sold at auction was a diamond-encrusted Birkin 30 Himalayan, which fetched $450,000 in 2014.
The Chinese offensive: the actual value of the Birkin. In the context of a trade war like the current one, the rise of the Birkin as an investment hasn’t come without controversy. Following the imposition of tariffs by the Trump administration, Chinese influencers launched a campaign to demystify the value of these bags. In recent days, they’ve flooded TikTok and X with videos directly addressing customers of these brands and analyzing the cost of manufacturing in China.
According to them, the manufacturing price of a Hermès Birkin is around $1,400. At the same time, luxury brands sell their bags for up to 10 times that cost, fueling the perception of a speculative bubble around these luxury items.
Image | Hermès
Related | Luxury Brands Hoped to Expand in the U.S. Following a Decline in China. Tariffs Had Other Ideas
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