Is an Hermès Birkin bag a better investment than gold?

Reports suggesting that Hermès requires shoppers to make purchases across multiple categories before being eligible to buy a coveted Birkin bag have led some luxury experts to speculate that these bags hold more value than gold.

An article in Fortune this week highlighted that the value of a Birkin bag doubles approximately every five years, positioning it as a superior investment compared to gold.

Following an antitrust lawsuit filed in California last week regarding the unattainability of its bags for two customers, who were allegedly coerced into purchasing other products before becoming eligible for a Birkin, which essentially underscores the essence of luxury: low availability and high desirability.

James Firestein, founder of luxury resale and authentication platform OpenLuxury, told Fortune: “the resale value of particularly the Birkin and Kelly bags over the past 10 years has outpaced gold. Second-hand demand is so high partly because the resale market offers shoppers more options than the Hermès store, where customers are allowed one quota bag per year, and rarely get to choose the exact model they want," Firestein said.

Limited availability

Birkin bags are highly exclusive and notoriously difficult to obtain directly from the Hermès store, as the California plaintiffs would confirm, due to the brand's strict purchasing policies and limited production. This scarcity contributes to their allure and drives up demand.

High demand

Despite the hefty price tags, which can range from 9,000 dollars to 30,000 dollars, Birkin bags are highly coveted by collectors, fashionistas and celebrities worldwide. The bags' iconic design, exquisite craftsmanship, and association with luxury contribute to their enduring popularity.

Furthermore, as the secondary market for Birkin bags continues to experience significant growth, resale prices can far exceed their original retail prices.