Starting today, I start saving all my spare cash as I’m looking to make one of the smartest investments possible, a Hermés Birkin bag.
Word on the streets is that it the well-priced accessory has increased in value by over 500% since its 1984 release. The value of Birkins have apparently never dropped and the handbag’s value has as reported by Baghunter, increased by an average of 14.2% annually making it arguably one of the safest investments you could possess.
The first thought you had was probably how is this possible despite economic instability. This however has been made possible by the fact that Hermés Birkin bags are ultra-luxury goods and while the luxury markets do suffer from economic downturns, ultra-luxury markets continue to thrive. Baghunter founder Evelyn Fox told Daily Luxury. “As such, potential volatility in the economy throughout 2016 will likely have little to no effect on the ultra-luxury collectors market and we expect it to continue to thrive for the foreseeable future, remaining the least risky investment opportunity in 2016.”
Gold on the other hand is a luxury good and as such has seen its price fluctuate. For instance, Gold saw a decrease of 10 percent at the end of 2015, finishing the year at $1,061.71. This is a 40 percent decrease from its 2011 peak. Gold is expected drop further to approximately $1,114 per ounce for the year, down from its $1,156 average for 2015.
This all sounds nice, that is until you realise you probably won’t get yourself a Birkin bag, not because you can’t afford it, which is likely, but because many times Hermés boutiques leave you on the waiting list for ages. As such, many of the Birkin bags you spot around are acquired through resale market which is surging and expected to probably double within the next decade.
