Watches vs. Handbags: Comparing Two Investment Markets

When people think of alternative investments, art, wine and gold usually come to mind first. Over the past decade, however, two segments of the luxury market have proven they can hold their own against traditional assets: watches and handbags. At Mint Value we operate in both worlds – our Prague boutique carries Rolex, Patek Philippe and Audemars Piguet timepieces alongside Hermès Birkin bags. So how do the two markets compare?

Two markets, one principle: scarcity

The underlying logic is the same on both sides. Value is created not by materials or the boutique price, but by the gap between demand and availability.

With watches, this is most visible in steel sports models. A Rolex Daytona, a GMT-Master II or a Patek Philippe Nautilus can rarely be bought off the shelf at an authorised dealer – waiting lists stretch on for years. That is precisely why these references consistently trade above retail on the secondary market.

With handbags, Hermès plays the same role. You cannot simply walk into a boutique and buy a Birkin or a Kelly – Hermès offers them only to selected clients with an established purchase history. A brand-new, unworn Birkin therefore commands a premium over its boutique price from day one.

The icons of the watch market

The investment core of the watch market consists of a handful of references we keep in our collection on a regular basis:

• Rolex Daytona – the chronograph with arguably the strongest story in watchmaking. The “Panda” version with its white dial ranks among the most sought-after modern references, while vintage pieces such as the “Paul Newman” Daytona fetch millions of dollars at auction.

• Rolex GMT-Master II – the “Pepsi”, the “Batgirl” and the more recent “Bruce Wayne”. The coloured bezels have turned each version into a collecting phenomenon in its own right.
• Patek Philippe Nautilus – above all the reference 5711 with the blue dial, discontinued in 2021, after which prices soared. Few examples illustrate better what the end of production does to value.
• Audemars Piguet Royal Oak – Gérald Genta’s 1972 design, which defined the luxury steel sports watch as a category.
• Cartier – the Panthère, the Santos and rarer pieces such as the Tank à Guichets prove that elegant watches outside the sports mainstream carry investment potential of their own.

The icons among handbags

While several brands compete for investors’ attention in watches, the handbag market has a single undisputed ruler: Hermès.

• Birkin – the absolute icon. Sizes 25 and 30 in neutral colours (Etoupe, Gold, Gris Misty) and durable Togo leather are the most liquid combination on the market – which is exactly why you will find them in our collection.

• Kelly – the second Hermès legend, the Birkin’s more refined sister with a devoted collector base of her own.
• Birkin Himalaya – crafted from Niloticus crocodile, the most expensive handbag in the world, with auction results exceeding half a million dollars.
• Chanel Classic Flap and 2.55 – the only bags outside Hermès that can seriously be described as stores of value, helped in no small part by Chanel’s year-on-year price increases.

We do not currently hold the Kelly, the Himalaya or Chanel in stock. Thanks to our network, however, we can source them for our clients – just as we source hard-to-find watch references.

How the markets perform: returns and stability

Long-term luxury asset indices such as the Knight Frank Luxury Investment Index rank both watches and handbags among the best-performing categories of the past decade. Each market, however, behaves quite differently.

Watches went through a steep rise in 2020–2022 followed by a correction – anyone who bought a Nautilus at the peak of the bubble had to wait for a recovery. The long-term trend of well-chosen references nevertheless points upwards, and the market itself is vast, transparent and liquid: pricing data is publicly available and demand is global.

Handbags grow more slowly but with remarkable consistency. Hermès raises its boutique prices every year, pulling the secondary market up with it, and the Birkin has virtually never seen a markdown. Volatility is lower than with watches – handbags never experienced the 2021–2022 bubble to the same extent, and so never suffered its collapse either.

In short, watches offer greater upside and liquidity, while handbags offer lower volatility and exceptional price resilience. Combining the two makes sound portfolio sense – one of the reasons we offer both categories under one roof at Mint Value.

What determines value

Whether you are investing in a Daytona or a Birkin, the same factors apply:

• Condition – the difference between “unworn with stickers” and “visible signs of use” can easily amount to tens of per cent of the price. That is why we state a precise condition grade for every piece.
• Completeness – the original box and documents (papers for watches, the boutique receipt for Hermès) are all but mandatory for an investment-grade piece. A full set holds its value considerably better.
• Authenticity – the counterfeit trade is enormous in both categories. Every piece we sell therefore passes a multi-stage verification process backed by a 100% authenticity guarantee.
• The right choice – not every watch and not every handbag is an investment. A Rolex Datejust in a desirable configuration or a Birkin in a neutral colour, yes; a fashion piece with no secondary demand, no.

Watches and handbags are not rivals – they are two sides of the same luxury market, where value rests on scarcity, condition and story. Watches are the more dynamic and liquid of the two; handbags the steadier and more resilient. A discerning collector can profit from both.