Luxury Handbag Auctions Set Record Prices
The prices of unique luxury handbags have been going crazy at auctions over the past two years. The most sought after bag almost always being a crocodile skin Hermes Birkin. This red Birkin currently holds the record for most expensive bag sold at a luxury handbag auction, fetching $203,000!
It probably won’t be long before that record is broken and in the mean time plenty of bags are fetching prices of up to $100,000. At an auction in New York at the end of April, Heritage Auctions sold over 90 Hermes bags ranging in price from $10,000 up to the $87,500 paid for the ‘Horseshoe’ crocodile Birkin bag you see below.
In fact, at that one particular auction eleven Hermes bags sold for $50,000 or more! The growth has been spurred by the transition in recent years of designer bags from fashion status symbols to assets and investment opportunities. But, should it be a surprise that a designer bag should be treated the same way as a piece of antique furniture, a luxury watch or classic car? The design is exquisite, the materials are not only luxurious, but exotic and their scarcity is carefully controlled by the brands that produce them.
Designer handbags also have a timeless quality – though fashion is constantly evolving, the classic look of a Chanel 2.55, for example, will always be in demand. When you also consider that the storage and maintenance of a designer bag is far more straightforward than many other assets – no wine cellar, garage or climate-controlled art gallery necessary – it’s no surprise bags offer an attractive alternative to the more traditional assets.
The market for designer bags is still relatively new, but as the boom in luxury handbag auctions shows, the appetite for investing in luxury handbags has certainly been whetted.