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Where the Money Goes - Luxury Investment Index

Wealthy investors worldwide are looking for assets that satisfy both head and heart. Our latest Index maps the place where investment meets personal passion.

Last year was a combination of relative moderation and charitable deeds for the global rich, according to the results of The Wealth Report’s annual Attitudes Survey of private bankers and wealth advisors. A net balance of almost 10% of respondents said their clients had increased their spending on philanthropic activities in 2012, while globally just 1% increased their spending on luxury goods.

The slowdown in overall spending levels is hardly surprising, given the economic uncertainty gripping large parts of the world. Russia, North America and Europe all saw a drop in luxury retail therapy. More unexpected, perhaps, was that philanthropy did not follow suit.

We put together the Knight Frank Luxury Investment Index based on the weighted performance of existing indices for nine classes of collectable asset: fine art; Chinese ceramics; classic cars; coins; furniture; jewellery; stamps; watches; and fine wine.

 % Price growth to Q3 2012 1 year   5 year 10 year 
 Classic cars 23% 115%   395%
 Stamps  9% 72%   216%
 Art  0% 92%  199%
 Wine   -19%  7%  166%
 Jewellery   2%  60%    144%
 Chinese ceramics   0.4%  54% 85%
 Watches   8% 27%  76%
 Furniture   -9%  -12% -18%

Source: Knight Frank