Beyond the Boutique: Birkin Bags as an Investment
Have you ever dreamt of owning a Hermès Birkin bag? Not just for its luxurious craftsmanship, but as a potential investment that appreciates over time. You're not alone. Birkin bags have become a symbol of not only high fashion but also alternative investments. This guide will unveil the secrets of investing in Birkin bags, equipping you with the knowledge to make informed decisions.
You already know of the investment potential of Birkin Bags?
Here is a brand-new 25 cm, 2024, Hermès Birkin bag (unworn) available on the Splint Invest app right now.
Why Birkins? The Allure of Exclusivity
Unlike mass-produced handbags, Birkin bags are crafted with exquisite materials and meticulous attention to detail. But the real magic lies in their scarcity. Hermès maintains a strict production limit and a by-invitation-only purchasing system, creating a coveted aura that drives up demand.
According to a 2023 report by Baghunter, a pre-owned luxury marketplace, Birkin bags have appreciated by an average of 14.2% annually over the past 35 years, outperforming the S&P 500!
Category Investment Profile: Birkin Bags
-
Risk: moderate
-
Expected Return: 12%
-
Investment Horizon: 2-11 years
Story Time: The Rise of the Birkin
The Birkin bag wasn't always an investment darling. Named after actress Jane Birkin in 1984, it gained fame for its practicality and timeless design. However, the limited availability and celebrity endorsements in the 90s created a frenzy, solidifying its status symbol and investment potential.
In 2022, Sotheby's sold a Diamond Himalaya Birkin 30 for over $450,000 at auction!
Hermès Gris Cendre Diamond Himalaya Crocodile Birkin VS ‘Regular’ Himalaya Crocodile Birkin
Investing in Birkins: A Beginner's Roadmap
Now, let's get down to business. Here are some key steps to consider:
-
Do your research: Understand the different Birkin models, materials, and colors that command the highest resale value. Vintage Birkins in exotic skins like crocodile or ostrich are particularly sought-after.
-
Seek professional guidance: Consider consulting a luxury handbag specialist who can authenticate your bag and assess its value like Threads (our expert partner for handbags at Splint).
While Birkin bags offer a unique investment opportunity, remember diversification is crucial. Consider allocating a small portion of your investment portfolio to this alternative asset class.
Why Invest in Handbags right now?
-
Low Volatility
Luxury handbags are among
the most stable asset classes,
exhibiting annual volatility ranging from 2% to 7%.
-
Growing Collector base
Handbag sales are projected
to hit $79.37 billion by 2028
(CAGR of 3.82% from 2024
to 2028).
-
Increasing Exclusivity
Average prices for designer handbags have
risen by 26% compared to 2019, with prices
for popular Hermès, Louis Vuitton, and Chanel
styles increasing even more.
The Final Stitch: Owning a Piece of History
Investing in Birkin bags goes beyond just chasing profit. It's about owning a piece of luxury history, a timeless design with enduring value. By following these steps and keeping your investment goals in mind, you can turn your love for fashion into a savvy financial move.
This blog is the third part of the series based on our recent Collectibles Report 2023/2024. In this blog we deep dive into categories of wine, watches and handbags, providing market performance and insight from our expert partners.
Our team recently had the pleasure of speaking with Tina, one of our most well-diversified and successful users, who shared her alternative investment journey and strategies with us.
