Hermes Birkin investment remains positive after record-breaking year

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Hermes Himalaya Niloticus Birkin

French fashion house Hermes’ iconic Birkin bag is boding well for investors, as twice this year the purse style broke its previous record for most-expensive handbag sold, according to Baghunter.

A new report from Baghunter is detailing how 2017 might be a smart year for investors of the Birkin bag, as 2016 saw an average annual return of 14.2 percent compared to the Standard & Poor 500 of a nominal 11.66 percent. The fashion house will be scaling back production of the bag to preserve its second-hand value and exclusivity through 2017.

“Our research study into Birkin bags displayed the upwards trend of the Birkin since its release and predicted a stable and healthy future for the bag both regarding the desirability and investment potential,” said Evelyn Fox, CEO of Baghunter. “Therefore, the continued success of the Birkin throughout 2016 is not surprising, and we expect this success to spill over into 2017 and beyond.”

Most expensive trend

Baghunter’s Year of the Birkin report showed that in April of this year, a 35-centimeter (13 inch) Braise Shiny Porous Crocodile Birkin broke the record for most expensive bag sold, previously held by another Birkin. The sale was held through a private appointment for $298,000.

The Birkin bag was manufactured in 2008. But the title did not last long, as June 2016 another replica handbags uk sold at auction.

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Record-breaking Birkin Bag sale

Still held by the iconic Hermes’ bag, the title is now coveted by a 30-centimeter (11.8 inches) Himalayan Niloticus Crocodile Birkin fitted with finished with diamond-encrusted 18-karat gold hardware. Extremely rare, the bag went to an anonymous bidder at auction for $300,168.

Only two moths later, the rare handbag broke its predecessors’ rank from June 2016.

Birkin’s sales are now up about 16 percent globally. This success is likely to continue throughout the next year, and maybe beyond.

Black seems to be the most popular color of interest for the Birkin bag. The color also sees the highest resale value, while red or pink are also very popular.

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Maia Hermes Birkin 2004

For instance, the reddish and pinkish hues have been a part of record-breaking sales three times.

Birkin statistics

Baghunter recently broke its previous sales records after a VIP client purchased a rare Hermes Birkin Bag.

Baghunter specializes in collectible fake handbags and is a trusted and authenticated source for “pre-loved” Hermes and Prada replica handbags. The elephant gray and black bi-color crocodile special-order Hermes Birkin handbag was taken off Baghunter shortly after being posted when it was spotted by an anonymous VIP client.

In the last 35 years, French leather goods brand Hermes’ iconic Birkin handbag increased in value by more than 500 percent, according to another study by Baghunter.

In Baghunter’s study, the online 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.

“The key takeaway from the success of the Birkin bag throughout 2016 is that it remains the most iconic of all replica handbags on the market,” Ms. Fox said. “The continuing upwards trend of the bag signals that it is unlikely to be usurped as both the most desirable and most investable handbag around.”

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