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Handbag That Beat S&P And Gold For 35 Years

“Price is what you pay and value is what you get” – Warren Buffett

According to a research study by Baghunter:

  • Compared 3 different type of investments: S&P 500, Gold, and Hermes Birkin bags
  • Period of 35 years selected for historical data to reflect the date when Hermes Birkin bags were first produced
  • Between 1980 and 2015:
    • S&P 500 returned average of 11.66%
    • Gold returned average of 1.9%
    • Hermes Birkin bags returned average of 14.2% (total increase of 500+% over 35 years)
  • If you take into consideration fluctuation of markets during the same time period:
    • S&P 500 annual returns peaked in 1995 at 37.2% but also reached a low of -36.55% in 2008
    • Gold reached a peak average of $1,571.52 in 2011 but reached a low of $271.04 in 2001
    • Hermes Birkin bags NEVER had a downward fluctuation and consistently increased; peak surge value of 25% in 2001 and lowest increase of 2.1% in 1986
birkin-300000Image Source: 1stdibs

Hermes Birkin:

  • Handmade in leather and named after actress and singer Jane Birkin
  • Prices range from $7,500 to $150,000
  • Distributed to Hermes boutiques on unpredictable schedules and in limited quantities According to an estimate, in 2014, Hermes produced 70,000 Birkin bags
  • In 2013, 30-cm Shiny Rouge H Porous Crocodile Birkin with 18K gold fittings and encrusted with diamonds fetched $203,150 at an auction in Dallas
  • In 2015, a pink crocodile-skin Hermes Birkin was sold for $223,000
  • In 2016, Himalaya Birkin, featuring diamond-encrusted white gold hardware, was sold for $300,000 in Hong Kong
  • Waiting list implemented by Hermes for a Birkin bag is sometimes as long as six years
  • Status symbol as celebrities such as Victoria Beckham, Jennifer Lopez, Lady Gaga, Kim Kardashian, Alessandra Ambrosio, Katie Holmes and many others
Cover Image Source: NilNYC
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