Which Investment Is Really Better
A trending topic that just went viral a few days ago is that the Hermes Birkin is much more valuable and safe to invest than gold or the stock market. Which caused a flurry of shares and retweets among social media accounts. But removing the side of variety though, in a logical and financial perspective is it really worth investing in a Hermes bag? The answer is yes. But why though.
If we check the three items side by side, the Hermes bag is a unconventional asset that is still awaiting financial recognition. The S 500 is an elusive group of companies which can be translated as the top 500 companies that would bring a bang for your buck if you invest. A return of a nominal average of 11.66% in fact. But if we compare it to gold which only has an average annual return of 1.9% gold has a significantly lower ROI but the gold standard is safe and less volatile. Which means it is almost impervious to the bleeding reds of the stock market. So much so that there are a lot of startups that are now revolving around gold, a pioneer of which Bitgold is now being copied by other startups as well.
The Hermes Birkin though has an ROI value of 14.2% slightly higher than of the S 500 but the resale value just gets higher and higher through the years. Luxury retail brands as well as the high street brands may be suffering from the economic decline but ultra luxury brands like Hermes seems not affected by change and the Birkin is something to bank on why.
But why is so valuable? How can a bag deemed so valuable. Because the supply is scarce and the demand very high, which fuels the price growth. So high though that some people wait for years just to get in the list. It is also so elusive, only offered to loyal Hermes clientele. It is built to withstand and is often passed down to their children and grandchildren as hand me downs. It is also expected to double in perfect hermes replica
value in the next 10 years.
Its social symbol also adds fuel to the fire of its increase in value, being a status symbol and coveted by many and worn the elite, rich and successful few and will only continue doing so.