Why Birkin bags are a better investment than gold, according to an Hermès expert

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The value of the Birkin bag rises from the moment it leaves the Hermès store.

This is because it is not an ordinary person who will buy the bag. Only customers with a strong purchase history for the brand are given the opportunity to purchase a “purse bag,” such as a Birkin or Kelly.

But even loyal Hermès shoppers can’t decide which Birkin they want. The brand allows boutiques to purchase a select number of Birkins for each season, and the style of the bags is not known in advance, according to Sotheby’s. The well-known system, called “Hermès Game,” only increased the desire of the bag – and became the topic of social events. a case this month.

Looking to ditch Hermès and find the bag their heart desires, handbag lovers spend thousands of dollars on the auction market. Because of its exclusivity and status as a coin, the Birkin bag is worth much more than its sticker price of around $12,000.

“Resales in particular of Birkin and Kelly bags over the past 10 years have surpassed gold,” said James Firestein, the store’s founder and endorser. OpenLuxuryhe said Chance.

Before founding his company in 2022, Firestein spent ten years as a senior authenticator, including two years as director of authentication. Rebag. Over the years of his career, Firestein has seen a “perfect storm” of things “supporting this rise.”

“I know of several cases where people have doubled their money by buying it 10 years ago, and selling it today is fine,” he said.

“Like buying a Picasso”

For some buyers, the Birkin bag is not luxury candy, but a worthy investment. Of the Birkin owners he has worked with, Firestein estimates that 75% use the bags, while the remaining 25% keep them in storage as cash.

“It’s like buying a Piccaso and keeping it in your house, because you can look at it, you can enjoy it,” Firestein said. “But then you ship it after a few years and sell it and stuff.”

The value of an Hermès bag can increase significantly over time, Firestein said, depending on its color, materials, and condition. The second demand is very high because the retail market offers consumers more choices than Hermès stores, where customers are allowed one bag per year, and often cannot choose the model they want.

Firestein said the highest price he’s ever seen is a Black Togo 30 Birkin that doubled in value in 5 years. But price increases can be driven by trends and changing demand—so it can be a “gamble,” he said.

“I can’t say I’m jumping in with all feet at this point,” he said. “But if you got it in 2012, and you sold it in 2019, it’s different.”

The Legend of Birkin

Before its bags appeared on the hands of Jane Birkin and Cardi B, Paris-based Hermès began in 1837 as a manufacturer of horse harness. Over the course of six generations, it became a ready-to-wear and leather power house known for its craftsmanship.

As for the famous Birkin bag, here’s how the legend goes: In 1984, the late actress Jane Birkin sat next to Jean-Louis Dumas, then-chairman of Hermès, on a trip from Paris to London. Birkin said she couldn’t find a bag that suited her needs as a young mother — so she drew her dream on a sick bag, according to CNN. Dumas infused the bag with equestrian elements, giving it a Hermès look.

“It was an iconic piece of old money,” Firestein said of Hermès’ position before he began coveting the Birkin.

The Birkin slowly rose to the status of “it bag” thanks to being seen on the hands of many celebrities in the 90s and 2000s—and beyond. Sex and the City. But it wasn’t until the 2010s, when the online marketplace reached the masses, that the hype went stratospheric.

Firestein appreciates e-commerce and helps consumers buy a second-hand Hermès bag from any country. Currently, online forums allow people to share the secrets of the Hermès Game only once for 1%. The Birkin became a collector’s item over time—and underground demand continues to dominate the retail market.

What’s in the bag?

Some people may covet Birkin bags because they’re hard to find—but fans also celebrate the brand’s craftsmanship and 200-year-old craftsmanship.

Unlike the products of LVMH and Dry, which often share factories, Hermès uses its own factories, says Firestein. Brands such as Balenciaga, Gucci, and Saint Laurent also tend to use materials that are cheap and easy to find, Firestein explains.

“Their leather factories are Hermès’ sole agents, and they only produce Hermès leather,” he said. “So you’re buying part of that heritage, but you’re also buying a very high quality product that they’ve been using for years.”

Compared to other brands, the quality of Hermès is “superior,” Firestein said. And although he works with 43 luxury brands, he admits that he owns Hermès bags.

“They are designed to last for generations,” Firestein said. And they’re just beautiful things at the end of the day — almost like statues.

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