Hermès, Birkin, 30cm , Box-Leather, 2023
Main reasons to invest
Since 1980, Birkin Bags have achieved an average annual appreciation of 14.2%.
Box Leather is one of the oldest types of leather used to produce Hermès bags.
This investment has a yearly potential of +9.0% over 4 years and is associated with approximately 2.7% annual costs.
Description
The design idea for the Birkin Bag came about during a flight in 1983. Louis Dumas, then head of the Hermès family business, met the British actress Jane Birkin during a trip, who was using a straw bag as a handbag. When asked why a bag was made of raffia, the actress replied that the usual handbags were too small. Louis Dumas immediately began sketching a trapezoidal bag.
The online portal Welt compared the price development of Birkin bags with that of US stocks and gold with an astonishing result. Precious handbags outperform traditional investments in terms of return. The annual increase in the value of Birkin bags is 5% higher than that of shares.
An Hermès bag is not just available in the shop around the corner. The producer determines who is allowed to purchase one of the coveted handbags in the first place. Production is deliberately limited. Similar to a Rolex watch, buyers have to put up with waiting periods of several years. To avoid these waiting periods, customers switch to the secondary market. Even bags with signs of wear after several years of use still fetch prices of over 10,000 euros. This underlines the enormous scarcity and high demand.
Rare pieces from limited editions are often traded for six-figure sums at auctions. The Kelly Bag with the model name Himalaya was auctioned at Christie's in Hong Kong for the record price of 200,198 US dollars. The handbag is made of matt white Niloticus crocodile leather and has an 18-carat gold handle.
Box leather is one of the most iconic and sought-after leather options used in the production of Hermès Birkin bags. It is renowned for its smooth and glossy appearance, as well as its exceptional durability. The leather is crafted from high-quality calf leather that undergoes a meticulous tanning and dyeing process.
Box leather is known for its structured and rigid nature, which allows the bag to maintain its shape over time. It has a distinctive grain pattern and a subtle shine that enhances its luxurious appeal. The leather's resilience makes it highly resistant to scratches and scuffs, making it a popular choice for those seeking a bag that can withstand everyday use.
One unique characteristic of box leather is its ability to develop a desirable patina over time with proper care. The leather ages gracefully, deepening in color and becoming even more supple, which adds to the bag's charm and individuality.
Due to its exquisite craftsmanship and the labor-intensive process involved in its production, Hermès Birkin bags in box leather are considered highly coveted and exclusive. The combination of the iconic Birkin design and the timeless elegance of box leather makes these bags a symbol of luxury and sophistication.
Return and cost calculation
- Total value €29,250
- Expected value after 4 years (balanced) €45,432
- Total fees €3,209
- Fees 11.0%
- Annual fees 2.7%
- Annual return 9.0%
Expert
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