Luxury Investments on the Rise
2013-10-04

Luxury Investments on the Rise

4 Oct 2013

This press release follows on from WealthInsight’s 2020 Foresight Luxury Investment Report, was published in October 2013.

Since 2007, an increasing number of millionaires have shown interest in alternative investments, such as art, classic cars, wine, jewellery, gems and watches, which in times of economic uncertainty can deliver higher returns than equities. According to a new forecast report from WealthInsight, luxury investments are expected to grow at a Compound Annual Growth Rate (CAGR) of 10.34% to reach US$621 billion by 2017.

In five years, luxury investments have increased in value at a CAGR of 14.58%, from US$210 billion in 2008 to US$362 billion in 2012. Millionaires of developed countries, such as the US, the UK, Germany, France, Switzerland, Australia, Canada, Japan and Poland, contributed the largest share in luxury investments, but millionaires of emerging countries, such as Brazil, Russia, India and China, registered the strongest growth at a CAGR of 22.24% since 2007, with luxury investments growing from US$43 billion in 2008 to US$96 billion in 2012.

The total luxury investments of millionaires is expected to grow at a CAGR of 10.34% to reach US$621 billion by 2017. According to Ouliana Vlasova, Head of Content at WealthInsight: 'Looking forward, millionaires' preference towards real assets is expected to drive demand for art assets and other collectables'.