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| Photo credits to owner |
Have you noticed that most of the rich people tend to buy a Hermès Birkin handbag?
This might be the reason why, according to a recent study buying those expensive bags could be your best bet for a long-term investment rather than buying a stock market or gold.
The study by Baghunter – an online marketplace for buying and selling luxury handbags – revealed that the Birkin bag far outperformed both the S&P 500 and the price of gold in the last 35 years.
Comparing the three types of investment it found that the stock market had a return of a nominal average of 11.66 percent, with a real return average of 8.65 percent.
Gold had an average annual return of 1.9 percent and a real return average of -1.5 percent, while the value of Birkin bags increased at a faster rate.
Rising by 14.2 percent over the same period, the Hermès bag never fluctuated downwards - instead it steadily and consistently increased reaching a peak surge in 2001 where it escalated by a huge 25 per cent.
The Birkin has only ever experienced various levels of positive fluctuation and saw a record-breaking year back in 2015 when a single pink crocodile-skin version sold for an astounding $223,000 (£177,173).
So what is it that makes them so valuable?
Well the Hermès Birkin bag is a status symbol for the elite and super-rich with its principal appeal lying in its exclusivity.
We know that we can only name few persons who own this kind of bag in the Philippines. With the value of each bag, it's really a huge puzzle for us on how did they get one.
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Credits to: Independent.co.uk
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