As geopolitical tensions and inflation concerns fuel demand for alternative assets, a luxury reseller says more buyers are turning to rare Birkin and Kelly bags as long-term investments.
A Dubai woman recently sold her wedding gold to begin building a collection of Hermès handbags, reflecting what one luxury reseller says is a growing trend among buyers seeking alternative ways to preserve wealth during uncertain economic times.
According to Love Luxury, a designer resale business with stores in Dubai and London, demand from customers purchasing Hermès bags primarily as investments has risen significantly over the past year.
“Over the last few months, we’ve noticed a new wave of clients who are entirely interested in making purchases to invest their money rather than as a fashion purchase,” said Adam Abraham, co-founder of Love Luxury.
“The war in Iran, rising geopolitical tensions, and ongoing fears around inflation have created an uncertainty amongst investors. Approximately 35 per cent of our sales are now motivated by investing purposes, a rise of around 25 per cent.”
The company said the trend began emerging last year but accelerated in recent months as global markets faced increased volatility.
Among the most sought-after pieces are rare Hermès Birkin and Kelly bags, particularly the Birkin 25 Himalaya, a model often regarded as one of the most exclusive handbags in the world.
“One of the most exclusive models we often have enquiries about for investment purposes is the Birkin 25 Himalaya model,” Abraham said.
“The bag retails at Hermès for around £40,000, yet it can appear on the resale market the very next day at more than triple that amount. In pristine condition we would expect to sell a Himalaya for upwards of £180,000.”
According to Abraham, it is this potential for appreciation that is attracting buyers who may not have previously considered luxury accessories as part of their investment portfolios.
Unlike traditional investment products, luxury handbags offer buyers a tangible asset they can physically own and use.
“Unlike stocks, which can lose value overnight due to political instability, or gold, which is tied directly to fluctuating commodity prices, in uncertain times, tangible luxury offers a sense of security that digital numbers on a trading screen cannot always provide,” he said.
“A rare Hermès bag is not only a financial asset, it’s a physical object with craftsmanship, heritage, and cultural status attached to it. That combination gives buyers confidence.”
One recent client in Dubai took the idea a step further.
“A client came to the Dubai store recently who had sold all of her wedding gold in order to start her Hermès collection to protect her wealth,” Abraham said.
The buyer chose the resale market after learning how difficult it can be to obtain highly coveted Birkin and Kelly bags directly from Hermès.
According to Abraham, many customers without an established purchasing history with the brand are often required to build relationships through multiple purchases before being offered some of the most desirable handbags.
“We’ve had clients tell us about everything from chess sets to tea cups that Hermès have offered them in order to increase their chances of being offered one of the most desired Birkin or Kelly models,” he said.
As more first-time buyers enter the luxury resale market, Abraham said caution is essential, particularly given the growing sophistication of counterfeit products.
“Do your research. You should 100 per cent trust who you’re purchasing from. The counterfeit market is becoming increasingly sophisticated and, to an untrained eye, a genuine Hermès can be almost impossible to tell from a fake.”
