21.11.2023
Luxury goods have long been more than a symbol of power and prestige. Some rare treasures can be a true store of value. These alternative investments offer investors unique opportunities for portfolio diversification in a rapidly evolving financial landscape. But as with any investment, sufficient information and market knowledge are crucial to success. Enter the Knight Frank Report.
The Knight Frank Luxury Investments Report is a quarterly publication by the prestigious global real estate consultancy of the same name. It offers in-depth insights into high-end investments like fine art, rare wines, classic cars, and luxury watches. The report provides data-driven analysis, expert opinions, and market forecasts aimed to help investors and collectors make informed decisions about luxury assets. Here you can find our by-category summary of the report for Q2 of 2023.
What was the performance of luxury watches, art, classic cars or wine & whisky? We have summarised the most important findings of the current report for Q2 2023 for you. Here comes Part I.
The Knight Frank Luxury Investment Index (KFLII), which rose by 7% in the last year, tracks the performance of various luxury asset classes over a 10-year and 12-month period using data from AMR, Fancy Color Research Foundation, Rare Whisky 101 and other reputable sources.
According to their finding for Q2, art topped all other categories with a +30% price increase in the last 12 months. Watches and jewellery also performed exceptionally well with an appreciation of +10%. Wine and luxury cars both increased by +5% and colour diamond rose in value by +4%. Unfortunately, despite their appreciation of +322% over the last decade, the prices for rare whiskies have now decreased by -4%.
Nonetheless, overall the index indicates an upward trajectory for the majority of luxury asset classes, highlighting the benefits of a diversified investment strategy.
Art has been a proven investment for decades – and not without reason. Last year, the asset class once again impressed with growth of +30%. Recently a new niche within the art market emerged as a lucrative investment avenue – female artists. In a leader board of individual artists whose works have grown in value the quickest over the past 10 years, eight were women, of which seven were living artists. The increasing demand is also underpinned by a huge rise in prices at auctions. The AMR index of 100 women artists shows the strongest average growth between 2016 and 2019, with an impressive +70%.
Yayoi Kusama is among the top female artists whose works have seen the greatest price increase over the past decade. While her average sales volume was $52,700 in 2013, it reached a whopping $434,977 in 2022 – an impressive +725% growth. Nonetheless, there is still a long way to go in terms of gender equality in the art market, but investing in work by female artists presents a unique opportunity to help bring about that change and grow your portfolio.
The AMR Watch index has gone up by +10%, and individual luxury brands such as Cartier, Rolex, and Patek-Philippe have also seen price appreciation. Cartier rose in value by +12%, and Patek-Philippe by +7%. The prices for Rolex watches have increased by +10% on average but certain models have seen much greater value appreciation. Over the past 10 years, Rolex Daytona Ref. 6241 with the John Player Special Dial had an appreciation of +571%, and Daytona Ref. 16528 Cosmograph gold increased by +272%.
At Timeless, you have the chance to participate in the value development of such unique pieces – for example, the Rolex Daytona Ref. 16528, with ultra-rare “4-line” diamond dial, which dropped 10% below market value.
Buy fractions of unique assets in drop or trading.
Rolex Day-Date Ref. 18238 ‘Grossular Dial’
Yayoi Kusama A Pumpkin (GB-D), 2004
Rolex Daytona Ref. 16528 ‘4-Line Dial’
