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Published on 11/03/2020 12:48:47 PM | Source: Knight Frank

New entry `Collectable Handbags` takes top spot; Luxury Investment Index with 13% annual growth : Knight Frank Wealth Report 2020

Posted in Expert Views| #Expert Views #Wealth #Knight Frank

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New entry `Collectable Handbags` takes top spot; Luxury Investment Index with 13% annual growth : Knight Frank Wealth Report 2020

 

Mumbai, March 5, 2020The Wealth Report 2020, released today by Knight Frank, exclusively reveals that new entrant ‘Collectable Handbags’ has topped the Knight Frank Luxury Investment Index (KFLII), rising in value by 13% over the 12 months to Q4 2019, knocking rare whisky off its number one position.

In the first index dedicated to tracking the burgeoning market for collectable handbags, Art Market Research (AMR), which supplies much of the data for the Knight Frank Luxury Investment Index, delves into the world of this emerging asset class. For KFLII, we focus specifically on collectable handbags made by Hermès and reveal that prices have more than doubled in value over a 10-year period (108% growth).

Sebastian Duthy, Director, Art Market Research, Knight Frank said, “It’s only been possible to create an index on handbags now because of the frequency with which many iconic pieces are coming to auction today. Although bags made by other luxury brands like Chanel and Louis Vuitton are also highly collectable, it is those made by Hermès that attract the highest prices and are considered the most desirable.”

The index results show that on an annual basis, handbags outperformed both whisky and art, which both recorded growth of 5%. Classic cars, another strong performer in recent years, slipped 7%. Overall, KFLII, which is a weighted average of each asset class, fell by 1%.

However, when we look at the results over a 10-year period, it is a different picture. Rare whisky continues to top the charts rising 564% followed by cars (194%). KFLII rose by 141%.

The results of The Wealth Report Attitudes Survey 2020 reveal that most UHNWIs are planning to retain or increase their allocations to luxury collectibles.

Andrew Shirley, Editor of The Wealth Report and the Knight Frank Luxury Investment Index said, “As with other investments of passion like rare whisky, whose value has risen sharply in recent years, handbags are increasingly being seen as an investment class in their own right, as well as highly desirable fashion accessories. Collectors are prepared to spend hundreds of thousands of dollars on the rarest or most desirable bags.”

 

Knight Frank Luxury Investment Index (to Q4 2019)

Luxury Asset

Annual % change

10-year change

Handbags

13%

108%

Stamps*

6%

64%

Rare Whisky

5%

564%

Art

5%

141%

Watches

2%

60%

Wine

1%

120%

Furniture

0%

-27%

KFLII

-1%

141%

Coloured Diamonds

-1%

86%

Cars

-7%

194%

Jewellery

-7%

90%

 

Source: Compiled by Knight Frank Research using data from Art Market Research (art, coins, furniture, handbags, jewellery, stamps and watches), Fancy Colour Research Foundation (coloured diamonds), HAGI (cars), Rare Whisky 101 and Wine Owners

*All data to Q4 2019 except stamps (Q4 2018)

 

INVESTMENTS OF PASSION

How is the allocation to your clients’ wealth to collectables changing or likely to change in the near future?  

 

Region

Increasing

Staying the Same

Decreasing

Africa

24%

53%

22%

Asia

31%

59%

10%

Australasia

4%

93%

2%

Europe (Excl. UK)

47%

47%

6%

Latin America

33%

42%

25%

Indian sub continent

24%

56%

20%

Middle East

48%

39%

13%

North America

14%

78%

8%

Russia & CIS

36%

50%

14%

UK

36%

62%

2%

 

 

 

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