World’s super-rich up spending on luxury assets despite squeeze on wealth

Comments Off on World’s super-rich up spending on luxury assets despite squeeze on wealth

The population of super-rich individuals may be shrinking, but it seems the world’s wealthiest are still finding the cash to splash out on luxuries like classic cars and jewellery.

The number of ultra-high net worth individuals – those with assets of more than $30 million (£21.4 million) excluding their main property – has fallen by 3%, according to data provided by New World Wealth for the Knight Frank Wealth Report.

Its the first fall in seven years and means there are now 187,500 super-rich individuals globally, down from 193,100 in 2014.

Despite the downward shift, blamed on slower economic growth and a more volatile financial climate,  spending on luxury items is on the up.

In fact, the value of the overall Knight Frank Luxury Investment Index (KFLII) rose by 7% during 2015.

The 10 collectable assets the super-rich are investing in:

Cars 

Coins 

Watches 

Wine 

Art

Jewellery

Stamps

Chinese ceramics

Coloured diamonds

Furniture

Classic cars, with a rise of 17%, were the top performer in the index, which tracks the price growth of 10 luxury investments sectors. 

Wine and luxury watches both increased by 5%, while jewellery saw a rise of 4%.

The report also showed the super wealthy are still in pursuit of the world’s “most desirable objects”. A Hong Kong businessman paid the top price ever achieved for a piece of jewellery – the Blue Moon diamond – in 2015. 

A string of other auctions throughout the year kept luxury investments in the spotlight.

“Although no classic car managed to beat the record set by Bonhams in 2014 when it auctioned a 1962 Ferrari 250 GTO Berlinetta for $38 million, eight of the 25 cars ever to have sold for over $10 millon at auction went under the hammer in 2015,” said Andrew Shirley, editor of the Wealth Report.

“Even furniture, which has performed poorly over the last decade, secured a new high for a living maker when a Marc Newson Lockheed Lounge sofa was sold in April for £2.4 million by Phillips,” he added.

The art index rose by 4% as last year saw more records broken in the modern art world.

Picasso’s Women of Algiers notched up a new record for a painting sold at auction after making over $179 million, while Reclining Nude by Modigliani was not far behind, going under the hammer for $170 million to a buyer from Shanghai.

Other global luxury spending trends include the continued growth in sales of super-yachts, with a 40% increase in sales.

The data follows the publication of Forbes’ list of the richest people in the world for 2016.

The world’s 1,810 billionaires have lost a total of $570 billion in a year and the combined wealth of this year’s billionaires was put at $6.48 trillion, down from $7.05 trillion last year. 

The number of billionaires has fallen from a record 1,825 last to 1,810 in 2015.

Only Bill Gates, who has topped the list for the last 22 years with a fortune now worth $75 billion, and Warren Buffet, the third richest man of the planet with $60.8 billion, managed to hold on to their places in the top 20.

Source Article from http://www.standard.co.uk/business/worlds-superrich-up-spending-on-luxury-assets-despite-squeeze-on-wealth-a3193886.html

March 3, 2016 |
Copyright © 2018 LondonBusinessLink.co.uk. All Rights Reserved. LondonBusinessLink.co.uk
WordPress Directory Theme

Classified Ads Software

We use cookies to ensure that we give you the best experience on our website.
More about our cookies
Ok
Skip to toolbar