BIRKINS A BETTER INVESTMENT THAN GOLD OR STOCK?
For all the women who are constantly judged for splurging on their designer clothing, there's hope for you yet!
Baghunter, an online handbag marketplace, published its research study comparing investment opportunities to determine the value of Hermes Birkin bags. In the study, Baghunter compared three different types of investments - the S&P 500, gold and Birkin bags. Each option was selected due to their distinctiveness and popularity. Baghunter analyzed historical data from the last 35 years (1980-2015) since the Birkin bag was first produced in 1980. Based on the data, Baghunter found that the average annual return on a Birkin bag was 14.2%, compared to the S&P average of 8.7% a year and gold's -1.5%.
What explains the findings that the Birkin bag is a better investment? There are some factors to consider. Birkin bags, which can range from $60,000 to $200,000, are made in limited quantities. There is far less supply than demand which fuels price growth, Birking bags are only sold to select clients of Hermes and due to these factors, Birkin bags have become a status symbol. According to Baghunter, "As a status symbol for the elite and ultra-rich, the main factor affecting the secondary market for Birkins is desire. All signs point to that desire remaining as strong throughout 2016 as it has been since the bag was released in 1985, with media outlets fawning over celebrities such as Kim Kardashian and Victoria Beckham who regularly sport their Birkin bags in paparazzi pictures. Beyond the media attention, the exclusivity of the bag along with the difficulty in purchasing one brand new from Hermes means 2016 begins with demand far outweighing supply on the secondary and investment market for Birkin bags."
Now we just need to find a few thousand dollars to invest!