These are the smartest handbags to buy as an investment, from Hermès to The Row

It’s not girl math — handbags can be a great investment. Not only are they actually usable, unlike stocks or bonds, but certain ones can be resold for more than they cost.

“People are shopping more with an investment mindset and less trend-driven, and I think that comes down to people understanding they can resell these items in the circular economy,” Kelly McSweeney, a senior merchandise manager at luxury secondhand retailer The RealReal, told Business Insider. “They are understanding more the value that their closet holds. If they have an item they haven’t worn, they can get a percentage of that initial purchase back and then put that back into their wardrobe.”

The secondhand luxury goods market reached about $50 billion last year, an increase of 4% to 6% from the year prior, Bain reported. There was growing interest in “preloved timeless bags” in the US, the report found. Meanwhile, a McKinsey report found that bags and shoes make up more than a third of all resale purchases.

In its annual Resale Report, The RealReal looked at which bags are selling for the highest percentage of the manufacturer’s suggested retail price and which are selling for even more, a trend partially driven by the scarcity model adopted by certain luxury houses, like Herms.

“It really comes down to availability in the primary market and then exclusivity, so depending on the brand’s strategy for releasing a bag,” McSweeney said.

Of course, a bag’s condition also plays a role. Resale value is highest for bags that have never or barely been used. That said, bags that are not in new condition can still sell above MSRP, McSweeney added.

Bags that are classic — full leather, lacking too much ornamentation, styles that return season after season — tend to fare best on the resale market long-term, which is one reason bags like the Herms Birkin and Chanel Kelly routinely show up on lists of the best investment bags.

These are the bags that, on average, have the highest resale value compared to their market value.