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Can Investing In Handbags Be As Lucrative As Investing In Art?

CBx Vibe:Baby Birkin” Gunna

By CultureBanx Team

  • Over 12-months Hermès handbags grew 13% outpacing art
  • A Birkin in white crocodile hide went for around $380K in 2017

If you were looking for a nice short-term investment perhaps luxury handbags is where you’ll see the biggest return, since they have officially become an asset class. Handbags were the number one collectible investment in 2019, beating out art, stamps and rare whisky, among other categories, according to a new report Knight Frank. The big winner over 12-months was Hermès handbags which grew 13%, well above the runners up of stamps at 6% and beloved art at 5%. So how can you play the handbag stock market?

Why This Matters: Luxury handbags are becoming less of an emotional purchase and more of a rational one, as they move beyond accessory status and into an investment portfolio. 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, handbags have more than doubled in value, up 108%.

Over a 10-year-time period, handbags have more than doubled in value, up 108%

The Knight Frank study found Hermès handbags increased the most in value in its 12-month index of what you might call alternative investment assets. The firm’s analysis focused specifically on bags by Hermès, whose most collectible styles are the famed Birkin and Kelly bags. In 2017, a Birkin in white crocodile hide went for around $380,000, making it the most expensive bag ever sold at auction. They remain the rare fashion accessory that’s often more expensive on the secondary market than purchased directly from their maker.

What’s Next: It might be best to look at luxury handbags as a short term investment with their good returns. 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.

CBx Vibe:Baby Birkin” Gunna

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