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Birkin Bag: The New Currency

A piece of fashion history, a white Himalayan crocodile Hermès Birkin bag with 18k

white gold details and 245 diamonds was sold for $300,168 (£211,260) at a Christie's

auction in Hong Kong by a private Asian collector. Last year, a pink diamond-studded

Hermès Birkin was sold at auction for $222,000 (£156, 240). The value of the Birkin

June 15th, 2016 Author: Aspasia Stephanou RSS-Feed

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bag has consistently increased in the last 35 years due to its exclusivity and rarity. Its

unwavering appeal lies in the bag’s recognizable image and practicality, its

increasing value and, thus, its popularity as an investment piece. The bag’s minimal

look coincides with the rise of “quiet luxury”—subtle and minimalist products that do

not exhibit logos or brand names—making it an iconic brand.

Diamonds or gold are not a girl’s best friend: Invest in a Birkin Bag

The affluent millennial woman would rather invest in a Birkin bag than diamonds or

gold. A recent study by Baghunter has shown that the ultra-luxury item appears to be

a better investment than gold, and a less risky one when it comes to investing in

stocks and shares.

Researchers compared the S&P 500, gold and Birkin bags to see the changes in

values since the Birkin bag first appeared 35 years ago. The S&P 500 has returned a

nominal average of 11.66%, with a real return average of 8.65 %; gold had an average

annual return of 1.9 %, with a real return average of -1.5%. These averages do not

take into account the fluctuation of the markets or the investors buying or selling

within that 35-year time period. During the same period, the value of Birkin bags has

increased by 14.2 %. While the bag’s value has steadily increased, the stock and gold

markets experienced negative fluctuations, making investments risky and

unpredictable. The value of the S&P 500 and gold are affected by economic factors

whereas that of a Birkin bag has persisted and increased even in times of recession.

Particularly, in 2001, its value increased by 25%. As the study indicated, “the main

factor affecting the secondary market for Birkins is desire. All signs point to that

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desire remaining as strong throughout 2016 as it has been since the bag was released

in 1985....the exclusivity of the bag along with the difficulty in purchasing one brand

new from Hermès means 2016 begins with demand far outweighing supply on the

secondary and investment markets for Birkin bags.”

History of the Birkin

The Hermès Birkin is a French handmade tote leather bag with characteristic saddle

stitching and is named after singer and actress Jane Birkin, the mother of actress

Charlotte Gainsbourg. The name of, and idea behind, the bag comes from a

conversation between Jane Birkin and Hermès chief executive Jean-Louis Dumas

during a flight from Paris to London in 1981. Jane had explained how difficult it was to

find a weekend bag she liked, and in 1984 Dumas made one especially for her. The

Birkins are made in a range of sizes using lizard, calf and ostrich leather. They are

lined with goat skin and feature gold or palladium-plated metallic hardware. Since

1985 they have become a status symbol and a must-have for cosmopolitan

fashionistas. But they are a rare thing and very difficult to purchase.

How to get one

As Michelle Goad, CEO of luxury personal shopping app P.S. Dept. that serves 20,000

luxury customers around the world, revealed to Bloomberg, "The key to getting one is

to find someone who has a relationship with one of their associates, [which means

they've] bought one in the past.” She added that “You have to have a purchase

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history at the store to just get started, then they meet with you, assess how serious

you are about spending, and then you go on their list." So unless you are one of these

“relationships”, you will have to go on a waiting list. The most exclusive customers

have also the choice of purchasing a customised bag that can meet all their

expectations and needs. Rachel Zoe, Jennifer Lopez, Kim Kardashian and Lady Gaga

are some of the celebrities that sport various colourful versions of the bag. Victoria

Beckham owns a £100,000 pink Birkin and a collection of Birkins that is worth £1.5

million.

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