Hermes Birkin: The replica handbag that is worth more than gold

— SINCE its creation 35 years ago the value of the Hermes Birkin has gone up 500 per cent. So what makes it such a good investment?

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The Birkin handbag has risen in value by 500 per cent since its creation 35 years ago

Broadly speaking, the world is divided into savers and spenders. There are those who gen up on pension plans and ISAs and always have something “put by” and then there are those who will blow a month’s salary on a replica designer handbag.

But is it ever possible to be both? In fact not only is it possible but in the current economic climate it is the handbag-splurger who turns out to be the cannier investor.

Of course it depends on the replica handbag but if you are lucky enough to own a Hermes Birkin you are in the money. That’s not just marketing hype but the considered view of investment analysts.

Consider the evidence. Since Hermes created the Birkin 35 years ago (naming it after English actress Jane Birkin who inspired its design), the bag has gone up in value by 500 per cent, which is a far better performance than the stock market and even gold, the quintessential investment commodity.

One analysis showed that between 1980 and 2015 gold returned an average annual increase of 1.9 per cent. The stock market returned an average increase of 8.65 per cent but replica Birkin bags trounced them all. They increased in value each year by 14.2 per cent.

And, unlike the gold and stock market, the value of the bag never fluctuated but kept increasing with each year and is expected to double over the next decade. The Hermes Kelly bag (named after Grace Kelly, the Hollywood actress who became Princess of Monaco) is equally covetable.

The only other luxury brand that holds its value as well is replica Chanel. The price of a secondhand classic, medium-sized Chanel replica bag with a flap has doubled in the last five years.

All of which makes a designer bag with the right label a better investment than gold bars. There is certainly no pension fund – and probably never has been – that could deliver anything like the same return.

If that stretches credulity bear in mind that last June in Hong Kong, a Birkin bag made of pink crocodile skin sold at auction for an astonishing £156. In 2014 a model known as Himalaya, made of pale crocodile skin described as “almost albino” with diamond embellishment, sold at auction for £129.

The price of a new replica Birkin bag starts at around £190. A plain black crocodile version currently goes for more than £260. But the resale price is always higher than the original. The online resale site 1stdibs offers a blue Birkin in matte alligator skin for £160 and a beige version for £165.

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Eva Longoria owns a Hermes Birkin handbag

On the online auction site HermesReplica sellers are even asking upwards of £100 for a canvas Hermes bag.

Suddenly reality star Kim Kardashian’s collection of Birkins, kept in a glass case, doesn’t seem quite so frivolous but utterly credible as the investment she claims them to be.

But what makes a Birkin bag so very desirable and valuable?

Quality is obviously important. “Hermes is the only luxury company that has not moved into mass production,” says Sabrina Sadiq, head of pricing and authentication at Designer Exchange, a company which buys and sells used replica designer handbags.

With its 19th-century roots in saddlery, replica Hermes uses only the very best animal skins. Each bag is hand-made by skilled artisans in France who can easily spend 18 hours stitching together each one. Fancier versions with diamond decorations take even longer.

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As does Paris Hilton’s sister, Nicky Hilton

They are impervious to passing fashion trends and Hermes also offers a lifetime repair service, meaning the bags can be passed down as heirlooms.

But far more crucial to the brand’s popularity is scarcity. Hermes replica bags are in a perpetual state of “sold out”.

The company only makes a certain number each year and it is never enough to satisfy demand, which drives up the price and leads to waiting lists – currently six years for a Birkin.

The fact that celebrities such as Victoria Beckham always seem to have a Birkin dangling from an arm every time they venture out in public conveys status for the celebrity (because they have got round the waiting list) and makes the bags even more covetable for everyone else.

Those who can’t wait (and the super-rich never have to) simply hire someone to source a bag for them.

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Hermes offers a lifetime repair service, meaning the bags can be passed down as heirlooms

This is not simply a matter of going into an Hermes stockist. For a start the shops don’t carry much stock. Hermes also likes to see some evidence of brand loyalty before parting with a Birkin or a Kelly.

The only quick way to get one is at an auction such as the regular sales of vintage replica bags held by French auction house Artcurial in Paris and Monaco, where the customers are mostly super-rich Russian, Chinese and Middle Eastern women.

Rare colours and materials, such as ostrich, clasps and buckles (collectively known as “hardware”) in precious metals and personalised touches all add to the price tag – and to any eventual resale value.

Why bother with a pension plan which could easily turn out to fall short of what you need? When it comes to investing perhaps it really is in the bag.

Hermes Birkin replica bags value increases 14.2pc annually

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A Birkin bag sold on HermesReplica for $199

In the last 35 years, French leather goods brand Hermes iconic Birkin replica handbag has increased in value by more than 500 percent, according to a new study by HermesReplica.

In HermesReplica’s study, the online replica handbag consignment marketplace compared three different types of popular investments: the S&P 500, gold and Hermes Birkin Handbags. The Birkin bag, named for actress and It-girl Jane Birkin in 1984, and based on an Hermes design from 1981, is a status symbol for the fashion elite, and as it turns out, a sound investment.

“As a whole, the study findings show how stable the ultra-luxury industry has been over the past 35 years when compared to more traditional investment opportunities,” said Evelyn Fox, founder of HermesReplica.Co.Uk. “In particular, the study displays how high-end, rare and sought-after luxury items such as Hermes Birkin handbags have never dropped in value, even during times of recession and economic difficulty.

“There is a difference between luxury and ultra-luxury. While the luxury market suffers during worse economic times the ultra-luxury market is impervious to economic factors that can affect other industries such as high-street retail and stock markets,” she said.

“As such, potential volatility in the economy throughout 2016 will likely have little to no effect on the ultra-luxury collectors market and we expect it to continue to thrive for the foreseeable future, remaining the least risky investment opportunity in 2016 in my opinion.”

HermesReplica selected the S&P 500, gold and Birkin bags as they represent distinct and popular forms of investments. The S&P 500 reflects overall returns of the stock market as a whole while gold is the most popular commodity and Hermes Birkin bags are a collectible and tangible investment.

The study follows investment trends over the course of 35 years, to align with the release of the Birkin bag.

All in the bag

In the time period evaluated, the S&P 500 has returned an average of 11.66 percent, or 8.65 percent in real returns. But, the S&P 500 averages do not reflect market fluctuations during the 35-year period and assume that investors have neither bought or sold stocks during that time.

Gold prices have offered a return of 1.9 percent, or a real return average of -1.5 percent. As with the S&P 500, the averages do not take into account the variations in the prices and investor behavior. For example, gold prices surged to an average of $157 per ounce in 2011, and a low of $271 in 2001.

During the 35-year period, HermesReplica found that Hermes 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 replica 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.

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.

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The data also reveals the risk involved in investing in either the S&P 500 or the gold market. Depending on the year, selling stocks or gold commodities could have resulted in staggering loss, when a different year could have been profitable.

Birkin bags incur the least investment risk regardless of the year. Economic factors, such as recessions, that strongly affect the S&P 500 and gold, have no influence on Birkin bags as the handbag maintains and increases value.

To give investors a full picture representation of today’s economic climate, HermesReplica also evaluated the performance of the S&P 500, gold and Hermes Birkin bags in 2015.

Last year, the S&P 500 had an average annual return of 1.36 percent, the worst performance since 2008’s recession. On Jan. 4, 2016, the S&P 500 saw its worst start to a new year in more than a decade.

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Experts suggest that the poor opening to start the year hints toward a global recession for 2016. The global recession likely will be driven by economic influencers such as Europe’s debt crisis, growing student loan debt, a decrease in retail sales, low United States factory orders, weakened U.S. export growth and a decline in corporate profits.

Gold saw a decrease of 10 percent at the end of 2015, finishing the year at $106. This is a 40 percent decrease from its 2011 peak. Gold is expected drop further to approximately $114 per ounce for the year, down from its $156 average for 2015.

Economic disturbances, namely dollar trends, are intrinsically linked to gold prices. Also, the direction of crude oil prices also affects the price of gold. For example, if sanctions are lifted on Iran mixed with high oil output, gold will be negatively affected.

While it is difficult to accurately predict economic trends of the S&P 500 and gold, Birkin bags are on pace to continue positively for investors.

In general, the handbag market has been positively affected by consumers in the BRIC nations.

Increased spending power, growing Internet penetration and access to ecommerce has caused handbag sales to grow at a fast rate in BRIC nations, according to a new report by Technavio.

The market is expected to continue to thrive in these countries as they become increasingly urbanized and Western trends infiltrate the regions. In 2015, shoulder bags were the most popular style, with brands like Chanel, Burberry and Michael Kors capitalizing on the market.

“Many major luxury replica handbags brands offer some potential in the resale market, however, we have found no handbag, other than the Birkin, that has increased in price so much over the last 35 years when sold on the secondary market,” Ms. Fox said.

“The main reason for this is a combination of the difficulty in purchasing a new Birkin directly from Hermes and the small number of Birkins made each year in comparison to other luxury brands,” she said. “If someone wanted a new Chanel or Louis Vuitton replica bag, they could simply go to their nearest boutique and purchase one, however, this isn’t the case with Birkin bags, which is why they are a sound investment for 2016.”

Rising resale

Described by Fortune Magazine as a replica handbag that “holds it value the best (and longest),” 2015 was a record-breaking year for the Birkin. With celebrity handlers such as Kim Kardashian and Victoria Beckham, the wait list for a Birkin can be as long as six years, a factor that has also worked to drive demand and value.

Birkin handbags have high market retail prices when purchased directly from Hermes, and often reach even higher prices at auction and resale due to the infamy of the bag as a status symbol. For example, last year was marked by a record sale for a pink crocodile-skin Birkin replica handbag, selling at auction for $223.

Baghunter also had a record sale in 2015, selling a $175 elephant gray and black bi-color crocodile special-order Hermes Birkin to a VIP client. This particular Birkin bag was listed on Baghunter in pristine condition, showing no signs of previous wear and tear.

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The replica handbag was likely purchased for value rather than as a fashion statement. If the VIP purchaser decides to sell the crocodile special-order Hermes Birkin in the future, it is likely to fetch more than the price for which it was purchased.

“Historical data is generally a very good indicator of future performance, and there are many indicators to predict Birkins will continue to rise in value at such a rapid rate,” Ms. Fox said.

“The secondary market for Birkins is at an all-time high, with many women who have been turned away from Hermes or are unwilling to wait years for a Birkin instead buying from a trusted reseller,” she said. “Last year alone, a Birkin broke the record for the sale of a replica handbag at auction, going for $222, and at Baghunter we also announced a record sale with a pre-loved Birkin selling for almost $100.

“These figures indicate Birkin bags are maintaining and even exceeding their market value on the secondary market, making them among the safest investment types available.”

Baghunter Announces Hermes Birkin Crocodile Replica Handbag Sells for Record $199

— A Baghunter VIP client snaps up an extremely rare Hermes Birkin replica bag for $199 setting a record as the most expensive handbag ever to be sold on the Baghunter website.

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Hermes Birkin Bi-Color Special Order

One of the rarest collectible replica handbags uk ever consigned by online luxury replica handbag retailer, Baghunter, is a rare Hermes Birkin, which was snapped up for a record $199 just days after being listed. The elephant gray and black Bi-Color Porosus Crocodile Special Order Hermes Birkin in size 35 was taken off the market almost as soon as it became available by a VIP client of the website, who wished to remain anonymous.

“A Birkin this rare doesn’t become available every day”, said Baghunter CEO, Evelyn Fox, “So we offered it to our VIP clients first, as is standard procedure, and within days received a call from a high profile VIP client.”

The huge sum paid for the stunning bag highlights the steep rise in value of replica Hermes Birkin bags as they become much more than just a fashion statement. In fact, the bag was listed on Baghunter in pristine condition, meaning it showed no signs of wear or defects and looked the same as it did when it was made. Even with the record figure paid for the Birkin, it will likely fetch an even greater sum when and if the buyer decides to sell.

“Many of the Hermes replica bags we consign come to us in pristine condition”, said Evelyn, “This is because many of the trusted resellers and collectors we work with understand the investment opportunities in Hermes replica bags and keep them solely for that purpose. This trend is set to continue with figures based on the past showing that the value of replica Birkin bags will continue to steadily rise by up to 10 times more than today’s market prices in the next 35 years if history repeats itself.”

Astonishingly, the record-setting Birkin could soon be relegated to the second most expensive handbag sold on Baghunter as a two-tone Hermes Birkin Special Order crocodile in two-tone black and orange was just listed for $114. Special order Hermes bags are especially valuable because they are custom made to order, available only for very special VIP Hermes clients and can take up to a year or more until you get your special order bag.

Baghunter, an A+ rated BBB accredited business, is a trusted source for both new and pre-loved Hermes and Chanel replica handbags. Services include buying, selling, and swapping rare and high value bags with every item examined by a team of professional authenticators to guarantee 100% authenticity. Their service is used by elite clients around the world including royalty, celebrities, athletes, and other ultra-high net worth customers.