For decades, gold has been the default store of wealth in many households, particularly in India. Yet a recent story from Dubai has reignited a debate: could a luxury handbag outperform gold as an investment? A woman reportedly sold all her wedding gold jewellery to build a collection of Hermès handbags, betting that the bags would preserve and potentially grow her wealth. While unusual, the case highlights a growing interest in tangible luxury collectibles among affluent buyers.
The rise of luxury handbags as alternative assets
Adam Abraham, co-founder of luxury resale company Love Luxury, told Business Today that his firm is increasingly seeing customers treat handbags as investment assets rather than fashion purchases. The shift reflects a desire for items that can be enjoyed while potentially retaining or increasing value in the resale market. However, not every handbag qualifies as an investment. The strongest case is made for Hermès Birkin and Kelly bags, where scarcity and exclusivity create a premium over retail prices.
How does Birkin resale compare to gold?
According to James Firestein, founder of OpenLuxury, a luxury resale and authentication platform, the resale value of Birkin and Kelly bags has outpaced gold over the past decade. He cited an example of a Black Togo 30 Birkin whose value doubled in five years. But Firestein also cautioned that returns depend heavily on factors such as colour, material, condition, and changing trends. In essence, bag investment can be a gamble.
Expert caution: enjoyment, not a financial plan
Radhika Gupta, MD & CEO of Edelweiss Mutual Fund, speaking at the India Today Woman Summit 2026, drew a clear line between holding value and financial investing. She advised that while a handbag may appreciate, building a financial plan around that expectation is akin to 'winning a jackpot'. For portfolio purposes, investors should focus on assets that build accessible wealth. Gold, with its broad market and ease of liquidation, remains a more reliable store of value for most investors.
Key takeaways
- Rare Hermès Birkin and Kelly bags have seen resale values outperform gold over the past decade in some cases.
- But bag returns depend on colour, condition, trends, and finding a buyer; they are not guaranteed.
- Experts advise against treating handbags as reliable investments; enjoy them but do not rely on appreciation.
- Gold offers broader liquidity and a long track record as a wealth-preservation tool.
Common questions
Can a luxury handbag be considered a reliable investment?
Only a small subset of rare, highly sought-after models like Hermès Birkin may appreciate. Even then, value depends on many variables, making it a speculative purchase rather than a sound investment. For most people, gold remains a more dependable store of value.
Is gold more liquid than handbags?
Yes. Gold can be sold in nearly any market worldwide, with transparent pricing and standardised forms like bars and coins. Handbags require authentication, condition assessment, and finding a willing buyer, which can take time.
Conclusion
For most investors, the choice between a Birkin bag and gold is not a simple one. While luxury handbags can be an enjoyable tangible asset, gold's liquidity, historical track record, and ease of access make it the more practical foundation for a portfolio. Check the live gold price to see current market levels.