Z women are a risky dream: the realities of “investing” in design bags like Hermès Birkin

• As Z Z is headed to social media to obtain financial adviceLuxury bags are being announced as the next great class of assets. “When a man tells you to invest in the stock market, but you know that Hermès Birkin bags give you a better performance of investment,” says an influencer. But experts are not so safe.

If you’ve ever ventured to Tiktok’s financial side (also known as Fintok), you may have left some convincing tips on what to do with your money.

Between the sea of ​​information, you can even find brows breeding ideas on how to overcome the S&P 500. For any experienced investor, this is a difficult sale, especially in the current rocky market. But Gene zers that may not know betterThe idea is intriguing and involves an influx of young women in particular who has been told to invest in luxury fashion products, such as the Birkin Hermès bagIt can be a better bet than proven and true investments.

“Whoever says bags are not an investment lies”, A Tiktok user published. “What I have in my hands (a Hermès Birkin bag) is certainly a better investment than the S&P 500, stocks and gold.” Another channel called Chanel Bags The “best investment you can do”.

It is true that some luxury products have had value jumps; according to Sotheby’sThe annual growth rate composed of 40 years of a Birkin bag is 5%. By 2024, Sellier Birkin’s bag experienced a year -on -year 52% increase, according to Elizabeth Layne, the Marketing Office in Chief of Rebag—A luxury resale company. Elsewhere, The realrWithtoThe Birkin sells an average of 34% above the MSRP, up to 11% compared to last year, says the associate director of the strategic and strategic collaboration company, Noelle Sciacca.

However, financial experts warn that the boards that bags can replace the more reliable and accessible traditional investment tactics are not misleading and can be dangerous to those without proper knowledge.

Bring data to fashion

Intersection of data and fashion is an area that Madé Lapuerta says that more than the conversation is missing. Her Instagram account, Data but do -the fashionIt now has more than 500,000 followers, exploded in popularity as a way for women in Gen Z to find an interesting and easy -to -read analysis of luxury goods price changes.

“Shopping does not always have to be a horrible decision (or) a horrible use of your money,” says Lapuerta Fortune. “Take care of fashion and luxury is not a stupid thing. It’s a very smart thing, and here is the information I want to give -you can understand it.”

With a background in consulting and data science, he admits that he equates luxury fashion to smart investments always increases his eyebrows, especially considering that the world of investment has always been dominated by men. Let’s take, for example, two of his publications:

“When the stock market crashes, but I have done all my savings in my shoe collection,” A place saidShowing the resale and retail price of popular shoes, such as the Dior Air Jordan 1 High. “When a man tells you to invest in the stock market, but you know that Hermès Birkin bags give you a better performance of investment,” said another, including a basic two -bar graphic demonstrating that the Birkin appreciated 24% more on average than the S&P 500 market in the last five years.

Although the publications were scribed in the comments section due to lack of context on the differences in the barrier at the entrance and the liquidity of the Versus Valid Market to buy a luxury good, Lapuerta says it is important to help people understand that fashion is something that has a potential for investment.

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A data shared publication but fashion (@databutmakeitfashion)

“When you really break it down, young people are very interested in investing,” says Lapuerta Fortune. “There is so much uncertainty in the world. People want to ensure that they make smart decisions, and then they can say -very simply, like this bag, they appreciate very valuable.”

But she also says that having a variety of investment range is important.

“I understand there are traditional channels. I have a great savings account that interests me. I invested in the S&P 500; I think he is smart.” Lapuerta says. “There are so many smart ways to invest your money and, by no means, to tell people that the only way to do it is with a Birkin bag.”

An investment of $ 10,000 10 years ago in a S&P 500 Index fund would now be worth more than $ 30,000 thanks to the compound interest. But for a Birkin, who had a Initial price of about $ 12,000 in 2015The return of investment depends a lot on the color, condition and demand of the bag. For example, Sotheby’s has been selling two Hermes bags since 2015: one This is in the market for $ 17,500 and another by $ 24,500.

The complexities of buying luxury products

There is a list of warning laundries behind buying or “investing” in luxury products that are often developed.

The first is that the value of a product depends on the whims of fashion trends, which could change during the night through a guarantee of celebrities or a viral video. That is why it is not entirely clear if Birkin’s bags, for example, will be worth a decade, or if you can find someone buying it (and thinks it is not a removal). And since the state of a product is paramount, the investment is likely that you cannot even use it for yourself, but only to sit in a closet.

In addition, buying new luxury products is really much more complicated than you could expect; Instead of presenting in the shop for a purchase, relationships should often be cultivated: to go to most of the “investors” they buy at the resale market.

In the Rebag, certain articles have the label of “Investment Piece”, which Layne says that style has shown “consistent value withholding, historical appreciation and strong demand for resale”, adding that luxury goods can be a “complementary asset experienced in any diversified portfolio”.

“Design bags, especially brands such as Hermès, Chanel and Louis Vuitton, are among the least volatile collectible assets and have some of the lower correlations with stocks,” says Layne. Fortune. “This can be especially important in uncertain financial time.”

It is also worth noting that Rebag reminds clients on top of each page on their website that they can buy products for more than $ 30,000 using AssertA purchase now, pays the subsequent company. Although it may seem like a cheating code, which covers an invertible product, even when you do not have enough money right now, it could dramatically hurt the finances of some people over the next few years.

The best investment council? They follow the basic concepts, according to experts

Allyson asA private Synovus Bank rich wealth, says that the newest and most glamorous investment opportunities are probably too good to be true.

“While social media can be an incredible tool, don’t let it be your Bible,” says Kiel. “You do not know what people are motivated or what evaluations come from. And so you have to take this with a grain of salt.”

At the moment when a “new” investment tactic appears in your feed, millions of others have probably overcome you.

“If you have heard of the last biggest investment in a cocktail, you probably have lost it,” she says Fortune.

Noah KernelsCEO of Financial Services Company AcornsHe says he follows the wisdom of the billionaire Warren Buffett: “When people are greedy, be afraid.”

“It is best to approach life with philosophy that there is no fast and rich scheme, because there is no,” says Kerner Fortune. “Of course, there are those outliers who became rich by winning the lottery or, in some ways, got the time of the crypt market, but for the rest of us it is a terrible strategy. The only way to make it rich is to be rich slow.”

Adheres with the basic foundations proved, how to save more than you spend and make the maximum Entrepreneur’s 401K match program It can lead to the highest opportunity to win, combined with the least amount of stress, add Kiel.

“The younger you are when you start this trip, the longer your track and the wealthier you will generate.”

This story originally presented to Fortune.com

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