Here is What You Need To Know:
In today’s landscape of stocks, crypto, real estate, and so on, designer handbags might seem like an outdated way of diversifying your investments. But are they obsolete?
According to Art Market Research (AMR), handbags from the likeness of Hermes, Chanel, and Louis Vuitton outperform art, vintage/classic cars, or rare whiskeys as far as investments are concerned. Hermès Birkin bag investments are popular because of the valuation spike – at least 83% in the last ten years.
Surveys opine that Birkin bags outperformed the S&P 500 and gold prices in the last 35 years. That vast number equals an annual ROI on a Birkin bag to be 14.2%. Compared to the 8.7% of the S&P and -1.5% of gold, it shows a massive difference.
So, how to maximize your profit chances by buying these handbags?
Prefer Buying More than One Handbag
Birkin bags are a status symbol of elegance, style, and exceptional craftsmanship. They are owned by famous personalities like Kim Kardashian, Kylie Jenner, and Lady Gaga. These are scarce in the market. The average waiting time for these in official stores is less than six years.
That is where the prices go high because it isn’t easy to grab one from the supermarket. The bags are driven by exclusivity and scarcity. Therefore, when you have the chance to buy them, prefer buying more than one -and you can consider the purchase an investment.
Should You Consider Buying from Resellers?
Buying from trusted and authentic resellers is what is most advisable. After all, how many people would want to wait for 5-6 years before getting their hands on the product? However, one needs to remember that most resellers have an astronomical price tag for the bags. Why? Because of the supply and demand.
Therefore, interested buyers need to look for verified and trusted reselling sites. Beware of fake Birkins – a common way for many sites to cheat customers. Check the authenticity of the site before making a purchase – always!
Buyers Must Be Ready to Shell Out at least $10K+
If you are in the market to buy Birkin bags as an investment, you must be ready to spend at least around 10,000 dollars. Buyers need to remember that the amount must be paid upfront. There are no EMI options available.
Also, if you want one of these luxury handbags, consider buying it now. Usually, Birkin bags never have sales periods or any deals and discounts. Therefore, the more you wait, the more the prices soar.
What to do to Maintain the Value of the Handbags?
Those who want to buy a Hermes bag as an investment – should consider handling and storing the handbag in good condition. The bag needs to be in its pristine and original form to get back what you paid for it or more. Remember that a worn-out bag might get you a different resale value than a new one.
You can consider Hermès Birkin bag investments an excellent idea as you can own these stylish luxury bags and get exceptional returns if you need to sell them. However, one should also consider having other investments because, alone, one Birkin bag won’t be enough for your retirement plan. Nevertheless, if you are okay with buying multiple ones, then it’s worth it.