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Forget stocks, study says Birkin bag is a better investment
Forget stocks, study says Birkin bag is a better investment
Listen to this articleLooking for new investment opportunities in 2016? A new study says your best bet is to buy a luxury handbag. Not just any handbag, an Hermes Birkin bag. A symbol of fashion luxury made for the most elite that can cost from $12,000 to as much as $223,o00 and frequently has a waiting list that can last as long as six years. The company controls the bag’s reach by only selling it to special Hermes clients.
Often seen on the arms of top celebrities in paparazzi photos, a study by luxury retailer Baghunter found that between 1980, when Birkin bags were first introduced, and 2015, the value of a Birkin went up 500 percent and its value is expected to double in the next decade.
The average annual increase in value for Birkin bags has been around 14.2 percent and their value has never fluctuated downwards, unlike the S&P 500 and gold markets, the study found. The bags reached their peak value increase in 2001, when there was a 25 percent increase in value.
The waiting list for Birkin bags has created a lucrative resale market and demand is expected to continue to outweigh supply in 2016.
