Luxury bags vs gold investment vs Birkin bag: Should you buy a handbag instead of gold?

For generations, gold has occupied a special place in Indian households — not just as jewellery but as a store of wealth. From wedding ornaments and family heirlooms to coins and bars, gold has traditionally been viewed as something that can preserve wealth over the long term. But as luxury collectibles gain popularity, a new question is emerging among affluent consumers: could a designer handbag be a better investment than gold?

The debate may sound unusual, but a recent story from Dubai has brought it into focus. A woman reportedly sold all her wedding gold jewellery and used the money to start building a collection of Hermès handbags. Her decision was not driven purely by a love for luxury fashion. She believed the handbags could help preserve and potentially grow her wealth.

The incident was shared by Adam Abraham, co-founder of luxury resale company Love Luxury, who said the business is increasingly seeing customers approach luxury handbags as investment assets rather than simply fashion purchases. According to Abraham, the shift reflects growing interest among affluent buyers in tangible luxury collectibles that can be enjoyed while potentially retaining or increasing their value in the resale market.

The idea may seem unconventional in a country where gold has traditionally been viewed as a store of wealth. But the growing secondary market for rare handbags, particularly Hermès Birkin and Kelly bags, has made luxury accessories part of a broader conversation around alternative assets.

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Why the Birkin is different

Not every luxury handbag can be treated as an investment. The strongest case is often made for Hermès’ Birkin and Kelly bags, where scarcity, exclusivity and strong resale demand have created a market beyond the original retail price.

According to a report in Fortune, Hermès quota bags such as the Birkin and Kelly are not freely available to every shopper. Customers typically need a substantial purchase history, while boutiques receive limited quantities and buyers may not know which models will be offered. This scarcity has helped drive buyers towards the resale market, where prices can be significantly higher than the original sticker price.

James Firestein, founder of luxury resale and authentication platform OpenLuxury, told Fortune that the resale value of Birkin and Kelly bags had outpaced gold over the previous decade. He also cited instances of owners doubling their money after holding a Birkin for years in pristine condition.

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However, even the Birkin story comes with a caveat. Firestein said the value depends on factors such as colour, material and condition, while changing trends and demand can make such purchases a gamble. He cited one Black Togo 30 Birkin whose value doubled in five years.

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So, should you choose a bag over gold?

For most investors, the answer is not that simple. A handbag may appreciate, but its resale value depends on rarity, condition, authenticity and finding a willing buyer. Gold, meanwhile, has a far broader market and can generally be liquidated more easily.

Radhika Gupta, MD & CEO of Edelweiss Mutual Fund, made precisely this distinction while speaking at the India Today Woman Summit 2026. She said investors need to differentiate between something that holds value and something that is a financial investment.

On luxury handbags, Gupta’s advice was straightforward: enjoy them, but do not build a financial plan around the expectation that their value will rise. A resale gain may happen, she said, but betting on it is akin to “winning a jackpot”.

Her broader message applies equally to gold jewellery and luxury bags: the fact that an asset can become more expensive does not automatically make it a reliable investment. For portfolio purposes, investors should focus on whether an asset actually helps build wealth and, importantly, whether that wealth can be accessed when needed.

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