If it isn’t Cardi B singing about her Birkin bags, then it’s Jeffree Star showing off his Birkin bag wall in his pink vault. Everyone and their mother wants one, but are they really worth the price? We’ve done some digging and here’s all the info you need to know about investing in the illusive Hermes Birkin Bag.
Earlier this year, Time Magazine made a very bold statement “The Birkin bag outpaced both the S&P 500 and the price of gold in the last 35 years— a time period chosen to reflect the date when Birkin bags were first produced in 1981. They say that the annual return on a Birkin was 14.2%, compared to the S&P average of 8.7% a year and gold’s -1.5%”. So essentially, what Time Magazine is saying is that the Birkin Bag has a better investment return than stocks or even gold! Now in theory that makes sense, however it reality it can be a different story all together.
In reality purchasing a Hermes Birkin Bag is the first hurdle that you need to jump. These bags are truly like gold dust, especially if you’re after some kind of limited edition bag. Therefore you either need to wait an eternity to get your hands on one. Either that, or you need to make friends in high places, for example a Hermes sales associate.
Unlike gold or other investments, when it comes to a Hermes Birkin, you need to purchase the whole Birkin. Therefore you need to be able to comfortably hand over upwards of $10,000 to purchase just one bag. Even if you do get the money together to buy that one and only Birkin, and even if it does work out to be a really great investment growing 14% per annum, that still will not be enough money to retire on or change your life.
The next problem you’ll face, after finding the Birkin bag and the purchasing it, is insuring it. Yes, you read that right. If you’re going to shell out that much money on one item, you’re going to want to keep your investment safe and sound. To insure a Hermes Birkin bag can cost you anywhere between a few hundred and a few thousand to insure each year. Of course the cost of insurance will vary on a few factors such as theft rate in your area, as well as how much the insurance company values your Birkin bag at.
Last but not least, you’ll have to keep the Birkin in perfect condition. Of course the ultimate goal is to sell the bag at a huge profit in the future. No one will be handing over the mega bucks to you, if the bag looks well-used and has chicken nugget crumbs in the bottom of it. So in short, you cannot use the bag, keep it somewhere safe and out of direct sunlight.
After hearing all of the pros and cons, will you be investing in a Birkin?