So, you’ve decided you want to buy an Hermes bag. Will you buy an Hermes Birkin or an Hermes Kelly? What’s the difference? This blog post is designed to provide you with all the information you need to decide between a Birkin and a Kelly.
Most people invest in cars, houses, or stocks – but if you’re a #bagaddict, in the immortal words of Carrie Bradshaw, you “like your money where you can see it, hanging in your closet.” There are a lot of things to consider when purchasing a luxury bag, especially on the resale pre-owned market. Not only are you worried about authenticity, but you’re also worrying about getting the most bang for your buck in terms of functionality and investment. For a higher investment, a neutral color such as black, brown, or gold has a much better chance of holding or increasing its value in the secondary market over time. When selling an investment piece, the most import factor in determining the price is the condition. If you keep your bag in like new or gently used condition, you can expect a higher payout price when selling to us. Today, we’re going to explore the best investment pieces you can get – both in terms of demand and perceived monetary value.
1. Hermes Birkin
You might have seen the reports swirling around that an Hermes Birkin is one of the best investments pieces you can buy on the designer handbag market. The articles claim that Hermes Birkin bags, “outpaced both the S&P 500 and the price of gold in the last 35 years.” Not only that, but they also fetch for well over retail value on the reselling market. When Hermes Birkin bags were first released in 1981, they could be purchased for only $2,000. In the last five years alone, the Birkin 30 in Togo Leather has increased from a retail price of $6,000 to a retail price of $10,900. Highly desirable and rare color combinations, like “Candy” colored Birkins or those with rare hardware like diamond encrusted hardware, can also fetch high dollar on the after market – like the $221,846 fuchsia crocodile-and-diamond encrusted Birkin that sold in Hong Kong recently. With MSRP ranging from $12,000 to $200,000, you bet you’ll get most of that money back when you invest in one of the most iconic handbags on the planet.
2. Hermes Kelly
Compared to the 1950s, when the Kelly bag first began to rise in popularity, Kelly bags are now much more expensive. When Hermes Kelly bags were originally reduced in the 1950s, they were only $900. Today in 2016, if you can find one, you can purchase a Kelly 32cm in Togo for $10,600, with limited edition pieces reaching up to $90,000. In fifty years, the price for a Hermes Kelly bag has increased by over 1000% its original price. This is due to the exclusiveness of Kelly bags, how rare they are, and the value of the materials used to make them.
3. Chanel Classic Flap Bag
The Birkin isn’t the only luxury bag that performs better than the S&P. The Chanel Classic flap bag gradually increases in value. Originally released in 1955, with a rectangular lock (read more on our Chanel information Guide), for a mere $220, the Chanel flap bag has continuously increased in price since then. If you bought a Chanel Caviar Classic Jumbo Flap bag in 2009 for $2695, the price of the same bag is now $5500. The resale value also retains or increases depending on leather and hardware. Not only are these bags valuable, but they are also highly popular and are always in demand because of their status symbol.
4. Chanel Boy Bag
These newly released Chanel Boy bags are growing harder to find in stores and in the resale market. Originally introduced in 2011, the price started at $2500. Today, the Boy bag starts at $5100. Despite being around for the last several years, the Boy Bag still sells out in Chanel boutiques, especially in black with diamond quilting. Because of this scarcity, the Chanel Boy bag often fetches up to 95% of its retail value on the pre-owned luxury market. We recommend getting your hands on one anytime you see an opportunity!
5. Goyard St. Louis Bag
These coated canvas classic totes have been known to fetch above retail prices in the resale market. The Goyard St. Louis tote is just a plain, yet highly functional shoulder bag with hand-painted chevron detailing, but we think that’s part of its appeal. These bags are extremely hard to find with under 30 Goyard stores around the world, but these bags are one of the most popular status symbols in the handbag collectors market. If you see a woman at the grocery store with a Godard St. Louis, you know she knows her stuff. Based on the exclusivity and notoriety, the Goyard tote (in any color) has been known to sell out immediately on our site and for near or over retail value.
6. Louis Vuitton Neverfull
When we list a Neverfull for sale, no matter what size or what material, they sell out in minutes. I’m not kidding, and that’s not an exaggeration. Louis Vuitton Neverfull bags retain about 85% of its resale value in Like New condition unless it is a rare limited edition bag which can see upwards of double the resale value. We think the Louis Vuitton Neverfull is one of the best pieces you can buy for its functionality and value. The Neverfull was introduced in 2007 and an MM (medium-size) was a mere $645, as compared to 2016’s price of $1260. That’s almost a 100% price increase! Invest in a Neverfull today and you won’t be disappointed!
7. Louis Vuitton Eva
Originally released in 2008 for $550, the Louis Vuitton Eva bag is one of the most desirable of the Monogram and Damier collections. Like the Neverfull, the Eva clutch bag sells out in minutes, regardless of condition. The Eva clutch is both affordable and functional – which make them one of the most highly sought after luxury bags. Eva bags typically hold 85% of their retail value on the resell market, making them a great investment bag for any collector. We also found that Eva bags are desirable in almost any condition! Nowadays, the Eva clutch sells at Louis Vuitton boutiques for $775, which makes the Eva one of the only bags under $1000 – and we typically sell pre-owned Eva bags for over 15% off retail price.
8. Recent Louis Vuitton Limited Edition Styles
When Louis Vuitton releases their seasonal Limited Edition styles, they are typically released in smaller quantities, which causes the resell market to explode. For years after the release of certain styles (especially those modeled after popular Speedys or Neverfulls), the market dictates that we can sell them for over their retail value. For example, items from one of the most successful artist collaborations, the 2009 Stephen Sprouse Roses and Graffiti collection still fetch for over their original retail price even in gently used condition. The older Monogram Watercolor, Eclipse and Fleur de Jais collections still holds their value. The more recent Yayoi Kusama, Tribal Mask, Totem, Monogram V, Monogram Ramages, Chain Flower or Monogram Jungle, can hold up to 90% of their retail value. We strongly recommend purchasing one of these Louis Vuitton Limited Editions items – they don’t call them collector’s items for nothing.
Honorable Mentions for Investment Pieces:
- Chanel WOC (wallet-on-chain)
- Louis Vuitton Hardsided Trunks and Luggage
- Givenchy Antigona (especially in the small size)
- Valentino Rockstud pumps, sandals, and flats
If you’re spending your hard-earned (or inherited) cash on a luxury item, you want to make sure you’re investing in a piece that can gain or hold its value through the years. At the end of the day, whether you’re purchasing luxury goods at a boutique or in the resale market, you should educate yourself about the current market price of the item. Do your research. Go on PurseForum. We hope this can help you make an educated purchase, but we’re always available to answer any questions regarding luxury items at email@example.com. Tell us about your investments in the comments below.