Hermès Birkin bag better investment than gold or stocks

London - Hermès Birkin bags are more valuable than gold or stocks, according to a recent study that found that in the last 35 years, the iconic French handbag has increased in value by more than 500 percent.

In Baghunter’s study, the online handbag consignment marketplace compared three different types of popular investments: the S&P 500, gold and Hermès Birkin handbags. The Birkin bag, named for actress Jane Birkin, turns out is a sound investment outperforming the other two traditional investment vehicles.

During the 35-year period, Baghunter found that Hermès Birkin handbags have increased in value year-over-year. The handbag has offered an average annual value increase of 14.2 percent. Unlike the S&P 500 and gold, the value of Birkin handbags has never decreased and has steadily and consistently increased. The handbag’s peak surge value occurred in 2001 when it increased in value by 25 percent, and the lowest increase was 2.1 percent in 1986.

2015 saw a record-breaking year for Hermès Birkin bags, with a record sale for a single handbag sold at auction broken by a pink crocodile-skin Hermès Birkin, sold for 223,000 dollars.

Hermès Birkin handbags named the best investment in new research

While for instance during the same period, S&P averaged out at an 8.65 percent real annual return, and gold, the most popular commodity to invest in, saw an average annual return of only 1.9 percent.

Baghunter suggests that the data of these three investment options can be used as an indicator of future market fluctuations. While the S&P 500 and gold are subjected to normal increases and decreases, Birkin bags have only weighed positively since the style’s introduction.

The report adds that the Birkin bags, which can cost up to 150,000 pounds new, marks the “safest and least volatile investment market” of the three. The only problem might be getting your hands on one, as the style is produced in limited quantities and there is a permanent waiting list, which can be as long as six years.

Baghunter said: “As a status symbol for the elite and ultra-rich, the main factor affecting the secondary market for Birkins is desire. The exclusivity of the bag along with the difficulty in purchasing one brand new from Hermes means 2016 begins with demand far outweighing supply on the secondary and investment market for Birkin bags.”

Images: Baghunter