Birkin bags can double in value in 5 years. An Hermes expert explains why it's a better investment than gold | Fortune

"That's partly because not just any regular person can buy the bag. Only customers with a sizable purchase history at the brand are offered the opportunity to buy a "quota bag," such as a Birkin or a Kelly. But even Hermès' most loyal shoppers don't get to choose the exact Birkin model they want. The brand allows boutiques to purchase a select number of Birkins per season, and the style of the bags is rarely known ahead of time, according to Sotheby's."

"Looking to sidestep the Hermès Game and score the bag their heart desires, handbag enthusiasts shell out tens of thousands of dollars on the resale market. Thanks to its exclusivity and its status as an investment piece, a Birkin bag's value is much higher than its sticker price of around $12,000. "The resale value of particularly the Birkin and Kelly bags over the past 10 years has outpaced gold," James Firestein, founder of luxury resale and authentication platform OpenLuxury, told Fortune."

"Prior to starting his own company in 2022, Firestein spent a decade as a luxury authenticator, including two years as the director of authentication at Rebag. Over the course of his career, Firestein has seen a "perfect storm" of factors "bolster this wild ride upward." "I know several instances where people have doubled their money based on buying it 10 years ago, and reselling it today in pristine condition," he said."

Birkin bags gain significant value immediately after purchase due to tight supply controls and buyer restrictions. Only customers with sizable Hermès purchase histories receive offers for quota bags like the Birkin or Kelly. Boutiques buy a limited number of Birkins each season and styles are seldom revealed in advance, creating an opaque process called the Hermès Game and spurring legal challenges. Resale buyers pay tens of thousands above retail; a Birkin's resale value commonly exceeds its roughly $12,000 retail price. Resale of Birkin and Kelly bags has outpaced gold over the past decade, with some owners doubling investment value over ten years.

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