Profitable Luxury: Which luxury goods performed better than the S&P 500?
Some of the world's ultra-rich spend their money on luxuries like fine wines, expensive watches or one-of-a-kind pieces of art as a passion, but others view them as investments – and their returns often end up profitable.
Marcus Lu of Visual Capitalist analyzes the 10-year performance of various luxury asset classes as of the fourth quarter of 2023, according to the Knight Frank Luxury Investment Index published as part of the 2024 Wealth Report . The 10-year yield of the S&P 500 has been included for additional context.
Rare whiskey bottles have outperformed the S&P 500 since 2013, not a bad investment. Other investments have been much less satisfactory.
The Knight Frank Index uses the weighted average of each individual asset, tracking sales of benchmark brands and pieces for each asset.
Over the past 10 years, single blend rare whiskey (or whiskey, depending on where it's made) has been the best-performing luxury asset, appreciating 280% and even outperforming the S&P 500.
Numerous sales records have been broken at auctions by COVID-19, with collectors sometimes shelling out millions for a single bottle. In November 2023, for example, a bottle of The Macallan Valerio Adami 60 Year Old (of which only 40 bottles were produced) sold for $2.7 million at a Sotheby's auction. Before the auction began, Sotheby's had given the bottle a high estimate of $1.5 million.
Fine wines and luxury watches were the two best performing luxury goods over 10 years, +146% and +138% respectively.
At the bottom, jewels (+37%), such as rings and necklaces, and colored diamonds (+8%), including rare pink and blue diamonds. These are affected by an excess of supply and or progressive development of diamond production
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The article Profitable Luxury: Which Luxury Goods Performed Better than the S&P 500? comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/lusso-di-qualit-quali-beni-di-lusso-hanno-reso-meglio-dello-sp-500/ on Thu, 28 Mar 2024 09:00:58 +0000.