An update by Knight Frank on its Annual Wealth Report reviews its Luxury Investment Index (KFLII) at the end of Q2 2017 and sees Fine Wine continue to hold top place in its ranking of the assets most invested in by the world’s wealthy.
At the end of June 2017 the fine wine measure employed by the KFLII reported 25% growth over the preceding 12 months with Fine Art ranked second at 7%, Classic Cars third at 5% and rare watches 4% up over the year.
The report also measures the luxury assets’ 10 year price volatility against alternative asset, Gold, and equities using the FTSE100 as a comparative indicator. Gold is the most volatile investment (interesting re its ‘safe haven’ reputation) at a 20% rating, FTSE second at about 13% and fine wine seventh, less volatile than cars, stamps, art, and coins at 6%.
Fine wine has the additional benefit of being the most ‘liquid’, excuse the pun again, of the luxury assets, with a recognized exchange (Liv-ex.com), and an established, proactive, secondary market.
The Knight Frank report focuses in detail on the Jewellery sector and looks at performance and record-breaking transactions quoting the sales of the 18.04 carat ‘Rockefeller’ emerald by auction at Christies NY in June for US$5.5M. and in April the sale of the Pink Star (59.6 carat pink diamond) for $71.2M in HK.
In the summer KF put the microscope on the classic car sector and featured further attention-grabbing automotive sales but in the last 12 months there is no comparison in terms of return on investment – Fine Wine is ‘top of the class’! To read the report in full please view at this link: https://kfcontent.blob.core.windows.net/research/540/documents/en/knight-frank-luxury-investment-index-q2-2017-4949.pdf