Hermes Bags That's Worth Investing In

Luxury possession's tends to have the connotation of spending money to showcase their social status. In recent years, one could even argue that it has became a form of investment due to the rarity and demandability of certain luxury goods especially if it's from Hermès. If you were able to gaze the market well, these luxury goods would double or even triple its' original value.

You might ask why?

It's all about the exclusivity. Simple economics: high supply with low demand means price hike. Hermès is the embodiment of exclusivity as status and money does not guarantee you a spot on purchasing a certain model from them. To be Hermès VIPs by being either a famous personnel or fulfill their spending requirement which varies on different countries, even so you are not guaranteed on getting a spot to purchase.

This article will showcase the exclusive model from Hermès.



Hermès Birkin:
Birkin are investment quality luxury items which mean that they wil either hold or increase their value over time. It is a true timeless master piece that will become the crown jewel of your bag collection. Since January 2016, Birkin value has risen by an average of 16% on the market. The most coveted Birkin bags are the smaller variations at size 25, the prices have increased 4.8% in 2019. Research has shown that Birkin are a better investment that the stock market where it averaged 14.2% annual return over the past decades, beating both S&P 500 index and the price of gold (Extrabux, 2019).



Hermès Kelly:
Hermès historic model, the Kelly is a highly coveted piece from Hermès. Known for its' iconic design, Kelly is definitely one of the staple piece for every Hermès enthusiast. Between 2006 to 2018, a average yearly increase of 33.33%. In the 50s, Kelly were worth around $900 USD, fast-forward to 2014, standard model ranges from $10,000 USD and special edition might cost $90,000 USD. This is solely due to the exclusivity, rarity and quality of materials (Baghunter, 2014).



Hermès Constance:
In 2012, Hermès Constance has went through a redesign of its' formal model which contributed that demandability of the bag. Hermès Constance prices has increased tenfold between 2006 and 2018, which translate to yearly increment of 76.92%. Hermès Constance has the highest average resale value at 105% compared to Kelly at 92% and Birkin at 80% (Vendome, 2019).

Reference
https://www.extrabux.com/en/guide/1307307
https://baghunter.com/blogs/news/investment-value-of-hermes
https://www.vendome.mc/2019/08/investing-in-hermes-birkin-kelly-and-constance-bags/

WRITTEN BY HARVARD