They strengthened by 16% in 2022, outpacing inflation. If some had to choose where to place their money, it would be good to turn to non-traditional and conventional investments, but to some alternatives, which sometimes hide a collecting passion. And here’s why: by 29% in 2022 prices in the art market increased on average, giving the best returns among the so-called luxury-oriented investments. According to data from this year’s edition of Knight Frank’s global wealth report, the second best performer was collector cars, with their prices rising by 25%, their highest performance in nine years. Case in point, a Mercedes-Benz Uhlenhaut Coupé, which sold last year for $143 million, breaking the record for the most expensive car ever sold.
Half of the luxury goods investments tracked by Knight Frank, such as collectible handbags, rare wines, jewelry, furniture, diamonds and rare whiskeys, saw double-digit price increases, it said in a report. moneyreview.gr.
Overall, the Knight Frank Luxury Investment Index, which tracks such investments, has gained 16% in 2022, outperforming inflation and outperforming most assets, such as stocks or even gold. According to Knight Frank’s Andrew Shirley, this shows how resilient these types of investments are to the shocks caused by major economic and geopolitical events that shake other markets.
Of the luxury investments, whiskey was the weakest performer in 2022, with prices increasing by just 3% on average. Collectible furniture and colored diamonds saw a 4% price increase. However, over a 10-year period, whiskey is the luxury investment with the best performance, having offered spectacular returns of up to 373%. Classic cars and collectible wines follow, with gains of 185% and 162% respectively over the past ten years. Now with regard to the prices of works of art, they have increased by 91% during the last ten years.
In particular, last year the market was boosted by the very high prices, which ensured some pieces of museum value, which were put up for auction by zaplutos and art-loving collectors.
For example, late Microsoft co-founder Paul Allen’s significant art collection was put up for sale by international auction house Christie’s in November for $1.5 billion. Also, Andy Warhol’s masterpiece Shot Sage Blue Marilyn sold for $195 million at the same house’s auction in May of last year. The movement in old collectible watches is also worth mentioning. Last year their prices rose by 18%, while the sales of the three auction houses – Christie’s, Sotheby’s and Phillips – brought in a total of 570 million dollars in 2022, i.e. 33% more than the corresponding income last year.
