Handbags as Investments: The Rise of Hermès Birkins
Shift your focus from traditional investments like stocks and gold; consider investing in a handbag—specifically, an ultra-rare Hermès Birkin. Priced around $12,000, this investment could see its value with double on the resale market in just five years, according to experts.
Even another popular option, the Kelly bag, could appreciate 20% to 40% during the same timeframe, making it a surprisingly fruitful choice.
James Fierstein, who founded a luxury goods resale and authentication platform called OpenLuxury, notes that “over the last decade, Birkin and Kelly bags have outperformed gold in resale value,” as he conveyed to a publication.
In his view, owning a handbag like this is reminiscent of having a piece of art—something beautiful to enjoy.
Factors such as the bag’s color, material, and overall condition can dramatically increase its value over time. Demand in the resale market is vibrant; buyers often find a broader selection compared to the Hermès boutiques, where access to coveted models is typically limited to one per year.
Fierstein shared that he witnessed a notable case where a Black Togo 30 Birkin’s value doubled in just five years. Yet, he issued a caution about the “gamble” aspect of the market; resale profits can vary significantly based on trends.
He advised against jumping in too quickly but acknowledged the profits achievable if one purchased the right models years ago, detailing that the returns from such investments have generally bested those found on Wall Street.
From 1980 to 2015, Birkins experienced an annual increase of 14.2%, eclipsing the S&P 500’s 8.7% return, although they did fall short of gold’s negative return during that time frame.
With the exception of certain models, Kelly bags represent a safer investment option for those looking to maintain value rather than chase rapid gains.
The Mini Kelly 20, for instance, now holds a staggering resale value, averaging a retention rate of 282% in 2025, and is considered on par with top-performing Birkins.
The key to this potential lies in Hermès’ stringent control over bag production and sales. Both the Birkin and Kelly bags are categorized as “quota bags,” with customers limited to a maximum of two purchases each year, often requiring substantial additional spending on other luxury items to even qualify for the purchase.
The craftsmanship behind these bags adds to their allure and price tag. Each Hermès Birkin or Kelly is meticulously crafted by a single artisan, taking between 15 to 24 hours of labor and requiring a year of specialized training to master techniques like the signature saddle stitch.
To complicate matters, Hermès is currently embroiled in a class-action lawsuit alleging illegal practices in how they connect access to these bags with mandatory purchases of other products, a claim the company denies.
