The Handbag That Has Consistently Beaten the S&P 500

One luxury item found in the world of alternative investments has been quietly outperforming the mighty S&P 500. Which one, you ask? The Hermès Birkin bag.

That stat has turned heads on both sides of the fashion-finance divide.

A New Class of Collectibles

Luxury handbags, including those from top-tier brands like Hermès and Chanel, have outperformed other collectibles in recent years. Their appeal lies in the rare amalgamation of brand prestige, limited supply, and surging demand from a global class of ultra-wealthy buyers.

YoY percentage increase for S&P 500, gold & Birkin bags. Source: The Fashion Law

The Hermès Birkin sits at the top. Retail prices start at around $9,000, but many Birkins — especially in coveted colors and materials — resell for $30,000 (or even more). In rare cases, they’ve sold for six figures.

The bags are notoriously hard to purchase through Hermès boutiques, where stock is often hidden from display and access is largely reserved for long-time clients. That deliberate scarcity has only fuelled its desirability and price stability—two traits any investor can appreciate.

Now handbags may seem like an unconventional asset class, but analysts say they’re among the least volatile in comparison to your conventional markets. A 2022 Credit Suisse report noted luxury bags as a viable hedge against inflation and a strong risk-reward alternative.

Unlike stocks, a handbag doesn’t pay dividends or track earnings — but it also doesn’t crash when financial markets turn sour. Over the past two decades, Birkins have weathered the storm of financial crises, inflation, and shifting consumer behavior. As far as financial definitions go, that would technically make Birkin bags the ultimate safe-haven.

As wealth becomes more concentrated and global demand for exclusive goods rises, items like the Birkin are increasingly viewed as cultural assets with financial upside. They represent more than fashion; they signal status, scarcity, and legacy.

But this market isn’t without risk. Tastes change, liquidity is limited, and access to top-performing models remains difficult. A Birkin might outperform the S&P 500, but it also requires significant capital, patience, and savvy to acquire — not to mention the right buyer when it’s time to sell.