By CultureBanx Team
- Hermès bags outperformed other luxury items last year rising by 15%
- Rappers like Cardi B constantly showcase their Hermès Birkin collection
Long-term luxury handbag investments are providing big returns, since they have officially become an asset class. The price of one Hermès bag outperformed other luxury items last year rising by 15%, beating out jewelry and wine, according to a new Knight Frank Luxury Index report. Hermès also benefited from some free marketing as well, thanks to rappers like Cardi B and the City Girls, constantly showcasing their collections.
Why This Matters: Knight Frank’s Luxury Investment Index tracks the value of 10 investments of passion, which rose by a healthy 16% during the year. These investments are comfortably beating inflation and outperforming the majority of mainstream investment classes, including equities and even gold.
The main key to investing in luxury handbags is you’ll probably need to keep it pristine, meaning you can’t really use it to schlep your lunch to work. It will be worth it because over a 10-year-time period luxury handbags increase in value 74%. If you can’t wait a decade to see this major increase, in just a short 12-month period luxury handbags will increase 15% in value.
Results of the Knight Frank Luxury Investment Index show that investments of passion are still riding high, despite economic worries. French handbag maker Hermès said in February that its famed classic Birkin and Kelly bags, which sell for around $20,000 each on average, were hot accessories during the holidays, helping fuel a 23% increase in its first-quarter revenue growth.
Situational Awareness: Birkins are assets and can be sold at a hefty price on the resale market. However, art may still need to be your go to long-term investment because in the past decade it has actually grown in value more than handbags at 91%.
CBX Vibe: “Baby Birkin” Gunna
