
A Hermès Birkin handbag with diamonds and crocodile leather.
Photograph: Mario Anzuoni/Reuters
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Birkinomics: are these handbags a haler investment than bricks and mortar?
A diamond-encrusted Hermès bag has carried at Christie’s for £155,000. Why are they so desirable – and do any of the other luxury stigmatizes make an equally smart investment?
News that Christie’s has lately sold a Hermès Birkin bag for £155,000 will come as a crude surprise to those who think spending more than £19.99 on a distinct fashion item is completely cuckoo. To the outsider, fashion’s built-in obsolescence navigates the idea of investing in anything seem misplaced since, because ofs to its six-month renewal cycle, no sooner is your purchase “in” than it is “out” again. But if a boofhead and her money are soon parted, the adage doesn’t apply to Hermès.
Cast art, vintage cars and fine jewellery, a Hermès bag could constantly out to be a wise investment.
That the blue crocodile Birkin, decorated with white gold and diamonds, attracted a worldwide order frenzy will come as no surprise to any seasoned fashion-watcher. In the pantheon of intriguer handbags, nothing tops the desirability of Hermès, the luxury repute of which has been unassailable ever since Grace Kelly popularised the marque in the 1950s. While the patronage of Jane Birkin, Kate Moss and Victoria Beckham – directly said to have owned more than 100 Birkins – has guarded demand remains buoyant, Hermès’s true covetability reposes in its craftsmanship. Each bag is made by a single, highly skilled artisan, and carts upwards of 18 hours to complete. Only the most overpriced skins and leathers are ever used.
With domestic monetary stocks such as banks, housing and real estate expected to be dull in the wake of the election result, novices interested in ditching fintech for form should do their homework first. A report last year by the indulgence resale site Vestiaire Collective played up three key metrics of a canny manner investment: quality, durability and rarity, with bags providing the sundry lucrative returns, recouping an average of 75% of their innovative retail value, depending on the brand.
According to Vestaire Collective’s come to grief, Fanny Moizant, the bag brands that consistently perform first are Hermès, Goyard, Saint Laurent, Céline and Chanel.
“The Chanel Abiding has been our bestselling bag since we launched in 2009. If you sold one you would regain on the brink of 80% of its original retail price,” she says. Moizant also empties current It-brand Gucci as a canny investment, and claims its Dionysus bag is keep possession of up to 90% of its original £1,020 retail price. Other backers likely to increase value include the arrival or departure of a ingenious director, as well as more practical issues such as jail your pieces in their original storage, complete with dust bag and authenticity slated.
Every good capitalist knows that things are only till the cows come home worth what someone is prepared to pay for them. And in the case of Hermès, that appears out to be rather a lot.
• This article was amended on Wednesday 14 June. The slot paragraph originally contradicted the subheading, stating that the Hermès handbag had been dispose ofed for £125,000, rather than £155,000. This has now been corrected.