What the world’s ultra-rich are buying
As the world emerged from the global pandemic, the ultra-rich rushed to spend, with handbags, works of art, collectible cars and luxury apartments on their shopping lists.
As leading economies struggle with the high cost of living caused by rising interest rates trying to stave off inflation, people with large bank accounts continued to spend, according to the latest Knight Frank Wealth Report.
Andy Warhol’s Shot Sage Blue Marilyn has sold for $195 million. Credit:AP
Among Australian Ultra High Net Worth Individuals (UHNWIs), the top three passion investments in 2022 were art, cars and colored diamonds, and for 2023 they are projected to be art, wine and jewellery. Those with net worth of $30 million ($46 million) or more are referred to in the report as ultra-high net worth individuals.
Knight Frank’s Luxury Investment Index (KFLII), which tracks the value of 10 passionate investments, rose 16 percent in 2022, comfortably beating inflation and outperforming most mainstream asset classes, including equities and even gold.
That was significantly more than the index’s nine percent rise in 2021.
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“In 2023, alongside wine and jewellery, collectible art is still the luxury investment of choice for Australian UHNWIs,” said Michelle Ciesielski, Head of Residential Research at Knight Frank.
“Considering the modern art space and the role of non-fungible tokens (NFTs) as works of art, just over half of our high net worth clients think the market still has a lot of potential, which is bullish compared to a global average of.” 34 percent.”
Classic cars accelerated the index, taking second place ahead of art with a price increase of 25 percent – the strongest result in nine years. Watches took third place in 2022 with an increase of 18 percent.
https://www.smh.com.au/business/companies/what-the-world-s-ultra-rich-are-buying-20230302-p5covc.html?ref=rss&utm_medium=rss&utm_source=rss_business What the world’s ultra-rich are buying
