Rapaport News




Advanced search
Latest Articles
Rough Markets
Polished Markets

Jewelry Ranks First as 'Investment of Passion' Among Ultra Wealthy

Purchases Made for Pure Pleasure Not Fashion
Mar 7, 2014 10:03 AM   By Jeff Miller
Print Print Facebook Facebook Twitter Twitter Share Share

RAPAPORT... Jewelry is the top ''investment of passion''  for the world's wealthy this year, according to Knight Frank Research's ''The Wealth Report 2014.'' 

Knight Frank Research found that globally, 36 percent of wealthy investors expect to spend more on luxury goods this year, with the largest increase anticipated from the wealthy in Africa. Fifty-seven percent of wealthy will spend the same amount as they had in 2013. Only 7 percent anticipate spending less on luxury, with the greatest decline coming out of Latin America.

Additionally, 61 percent of the wealthy claimed to seek investment of passion simply for ''personal pleasure,'' while 16 percent invested for capital purposes, 15 percent bought as a status symbol, 6 percent sought a safe haven and only 1 percent purchased for  fashion.

The Knight Frank Luxury Investment Index (KFLII), which measured the performance of  collectable luxury asset classes, noted that jewelry improved 2 percent year on year in 2013. However, the investment performance for the past five years has increased 46 percent and for the past decade it has increased 156 percent, according to the index.

Watches gained 4 percent in 2013, supporting a five-year increase of 32 percent and a 10-year jump of 82 percent.

Art ranked second in Knight Frank's investment of passion category, followed by watches, wine, diamonds, classic cars, photography, furniture, musical instruments, coins, stamps and ceramics, with the rankings reflecting regional nuances.

Jewelry is the most collected investment of passion asset  for the wealthy in  Africa, Asia, Latin America, the Middle East and Russia, whereas jewelry ranks third in the Australasia region, behind art and classic cars, and fourth in Europe behind wine, art and watches. In North America, jewelry as an investment of passion ranks third behind art and watches.  jewelry passion

Watches as an investment of passion fell into either second or third place for all regions except Australasia, where it ranked sixth.

Diamonds as an investment of passion ranked fifth globally, placing Asia in third place, wealthy investors in Africa, the Middle East and Russia in fourth place,  Australasia and Latin America in fifth place and  Europe and North America in sixth place.

The popularity of each investment class varies greatly by region. Overall, art is the most popular asset  followed by wine, watches, cars, diamonds, jewelry and photography. However, the popularity of furniture, musical instruments, ceramics, coins and stamps is decreasing.

The Wealth Report compiled surveyed data that represented 23,000 ultra high-net-worth individuals (UHNWI) with an average net worth of $68 million. Knight Frank Research defined UHNWI as  someone with $30 million or more in net assets, excluding their principle residence.

Print Print Facebook Facebook Twitter Twitter Share Share
Tags: art, diamonds, investments, Jeff Miller, Jewelry, knight frank, spending, the wealthy report, ultra high-net-worth individuals, watches, wine
Similar Articles
Rapaport TradeWire August 20, 2020
Aug 20, 2020
Industry Retail Mining General Finance August 20, 2020 RAPAPORT...
Rapaport TradeWire August 13, 2020
Rapaport TradeWire August 6, 2020
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First

Call Us: 1-702-893-9400
Member License Agreement   RapNet Trading Rules & Code of Conduct    Privacy Policy  
twitter twitter
About Rapaport
Advertise with us