Birkin bags are a better investment than gold, a Hermès expert says

The coveted Hermès Birkin bag has long been touted as a valuable investment. Now an Hermès expert says the luxury purses are even more valuable than gold.

Hermès’ most exclusive purse is so limited that it’s sparked what’s become known as “Birkin bait” spending, in which hopeful customers drop piles of cash on Hermès products to bribe their way into the chance to purchase one.

Not everyone can get to the top of the list. Now would-be Birkin buyers are turning to the resale market — and pushing up prices in the process. Secondhand demand has pushed the value of the two-pound purse well into the thousands, James Firestein, founder of the luxury handbag and accessories service provider OpenLuxury, told Fortune.

“The resale value of particularly the Birkin and Kelly bags over the past 10 years has outpaced gold,” said Firestein, who has decades of experience as a luxury authenticator.

Some resellers are benefiting.

“I know several instances where people have doubled their money based on buying it 10 years ago, and reselling it today in pristine condition,” Firestein told Fortune.

Meanwhile, a Birkin bag purchased from an Hermès store can range from anywhere between $9,000 and $30,000, depending on the leather bag’s size, color, material, and condition, according to fine arts dealer Sotheby’s.

Hermès runs a tight operation, and that hasn’t sat well with some. In March, the company was the target of a lawsuit that accused the luxury retailer of only selling its coveted Birkin handbags to customers who forked out hefty amounts of cash at the store on other items. Because customers are only given one chance to buy one handbag a year, on the company’s terms, Firestein said the resale market provides more options than the luxury retailer itself.

Still, Firestein cautioned aspiring Birkin owners, in part because “price increases can be driven by trend cycles and changing demand,” he told Fortune: “It can be a gamble.”

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