World's Best Investment And Retirement Plan: Hermès Birkin Bag

World’s Best Investment And Retirement Plan: Hermès Birkin Bag

Apparently, a vintage Hermès Birkin bag is better than diamonds, gold, or any other kind of investment, and we have proof.

Only a few days ago, Hermès Diamond Himalaya Birkin handbag went for an online sale. And set the world record for the most expensive bag, selling for a total of $300,000!

If you think this is a one-time thing, you're wrong. For the past decade, people have been warning us that the most prominent investment comes in the form of cute, well known, and pricey Hermès or Chanel.

What's even more surprising is that the most expensive bag isn't even vintage! It's a model from 2016, and Christie's auction included several other iconic bags.

The anonymous seller made a fortune, with rare matte white Hermès Himalaya Birkin 30, which sold for 150.000 USD, a Hermès Mini Picnic Kelly 20 II sold for 56.250 USD, and a limited-edition Hermès Bleu Marine Faubourg Birkin 20, which sold for 200.000 USD.

How Hermès Birkin Makes You Money

world's best investment and retirement plan: hermès birkin bag

Hermès Birkin bag is a status symbol, even during the pandemic.

The waiting list for the new one is from four to six years, and the prices go from 12.000 to 200.000 dollars.

The Birkin bag far outperformed the S&P 500 and the price of gold in the last 35 years.

Comparing the three types of investment, we found the following information: the stock market had a return of a nominal average of 11.66 percent, with a real return average of 8.65 percent.

Gold had an average annual return of 1.9 percent and a real return average of -1.5 percent, while the value of Birkin bags increased at a faster rate than either of them.

Rising by 14.2 percent over the same period, the Hermès bag never fluctuated downwards. Instead, it consistently increased, reaching a peak in 2001, when it escalated by 25 percent.

While it may not be the most obvious choice, the numbers are clear. Hermès Birkin is an investment, sort of like a retirement plan.

The Story Behind The Hermès Birkin

world's best investment and retirement plan: hermès birkin bag

It's more than a bag since the whole story is quite amusing and it includes an English singer and actress and one trip from France to her native country.

Jane Birkin spilled the contents of a straw tote in front of Jean-Louis Dumas, a chief executive of Hermès at the time.

The former partner of Serge Gainsbourg and style icon had no idea that she talked to one of the most powerful figures in fashion.

So, there she was, young and stylish Jane and her tale of the perfect bag. She then proceeded to draw her idea on a disposable airplane sickness bag.

The practical appeal of the Birkin bag lies in its functionality. It is large enough for travel and seals to avoid spilling its contents on airplanes.

Since Hermès already worked with fashion icons, such as Grace Kelly, not long after this historical plane ride, Birkin's wish came to life.

Other Iconic Bags And Their Value

world's best investment and retirement plan: hermès birkin bag

Hermès isn't the only fashion empire with a bag that can replace diamonds or stocks.

Chanel's Diamond Forever 2.55 is practically an urban myth. There are only 13 bags in the world, and white beauty could bring you almost 300.000 USD.

Louis Vuitton's Urban Satchel is also one of the ugliest bags ever.

It's made of various garbage and costs 150.000 USD. There's only one in the world, and needless to say, in a few decades, it will be priceless.

Other fugly Louis Vuitton bags are also moneymakers. Why? Because they are exclusive, collectors' items, and let's face it: diamonds are no longer that hard to find, and learning about their history only made them less appealing.

Expensive Bags And Treatment Of Animals

world's best investment and retirement plan: hermès birkin bag

Hermès Diamond Himalaya Birkin, as well as other bags from this French empire, are made from real crocodile skin.

And it doesn't stop with crocodiles: most popular materials include box calf, alligator, Clemence, Epsom, Togo, and Ostrich leather.

However, Jane Birkin herself protested back in 2015, so the company created strict rules and decided to make fewer accessories.

Let's be honest: there's no way that Hermès or Chanel will ever go vegan. And there's nothing ethical about the way they're treating animals. But, there's a silver lining.

These bags aren't trendy, flashy, one-season wonders. They will stay fashionable in the upcoming decades, and on the other hand, vegan leather is not easy to recycle.

And that's how these famous empires continue to make money, but so do their buyers.

We're off to Vestaire Collective, to find some rare bags as a retirement plan!