Hermes Birkin and Kelly bags are the priciest handbags available on the market, often selling more than $50,000. And today, inspite of the recession, designers on the French fashion househave challenged themselves with creating a few of the world's most costly handbags. The price tag: $1,980,034.

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Based on the Financial Times, Hermes enlisted jeweler and shoemaker Pierre Hardy to assist recreate their iconic handbags using precious materials. Together they crafted four variations, which took 2 yrs to build up. One (pictured above) can be a solid gold Kelly bag made to appear to be crocodile skin, and contains 1,600 diamonds since the handle. As though this is simply not outrageous enough, Hermes didn't want the luggage being overweight, so these lavish purses are in fact miniature sized. The Financial Times states that when they will work just like a handbag, the small purse strap really works being a bracelet.