By Angela Wills
The research study compared three varying categories of investments: gold, the S&P 500 and Hermes Birkin bags. These genre of investments were selected due to their representation of popular and distinctive types of investments.
It is known that gold is, and has been for a very long time, an extremely popular commodity for many investors. The S&P 500 representations zones in on the accumulated return characteristics of the market collectively. Hermes Birkin bags is viewed during the study as a tangible and collectible investment.
Thirty-five years is the length of time selected for the historical data to represent the initial production date of Hermes Birkin bags.
The S&P 500 has returned a nominal average of 11.66%, which equals a true return average of 8.65%, between 1980 and 2015. However, these averages don’t factor in the market’s fluctuation during this period and simply assume the investor has selected to neither purchase nor sell for 35 years.
For example, the S&P 500 annual returns peaked during this period in 1995 at 337.20%, but was able to also achieve an average low of -36.55% in 2008.
During an equal period of time, gold has presented an average annual return of 1.9%, which factors out to be a true return average of -1.5%. Again, the fluctuation of the price of gold during this period and assumes the investor has selected to stick instead of purchase or sell during this time frame.
The study presented a measurement of the trio in a period of over three years and the Birkin bag presented itself as the best investment of the three. According to Baghunter research, the bag never showed a decline in value; this made it worth more than both the S&P 500 and gold.
Based on the results of the study, if you’re waiting around to inherit a lump sum of gold, inheriting a Birkin bag may be a better advantage in terms of value and worth.