The "Holy Grail Bags" Continue to Appreciate in Value

Fashions come and go, but in the world of collectible handbags, the most coveted brands and styles have endured. Even through recent changes in collector demographics and the digitization of the marketplace, Hermès Birkin and Kelly bags, along with a short list of others such as Channel’s Classic Flap, continue to headline the collectible handbag market with long-term price appreciation and occasionally stunning auction prices. Last year, a Birkin 20 Faubourg Snow made in 2021 topped Sotheby’s handbag auction sales at $280,670.

Even at the upper echelon of collectible handbags, Hermès Birkin and Kelly bags stand apart as “holy grail bags,” says Judy Taylor, CEO of Madison Avenue Couture, which resells high-end bags. “These are assets that have had significant appreciation over time.” In contrast, fashion bags made by top luxury brands such as Fendi, Gucci and Bottega Veneta often retain much of their value for resale, but they’re less reliable investments for the long term.

The allure of top bags is preserved by keeping them scarce, Taylor says. The most soughtafter Hermès bags aren’t available at retail; big spenders may be offered the opportunity to buy one after a big spree on other products at Hermes, but otherwise the secondary market is the only channel open to collectors.

“I tell clients if you’ve never bought a Birkin before, buy a black 30-centimeter with gold hardware and Togo leather. It’s our number one seller,” Taylor says. “They’re around $32,000. Right before Covid, they went for about $20,500.”