Art, Watches and Rare Whiskey: Top Luxury Investment Choices of the Wealthy
Should You Invest in Luxury Goods?
The Most Lucrative Luxury Investments of 2023
Returns on different types of luxury goods have ranged from 8% to 280% over the last 10 years, compared to 158.1% for the S&P 500. Should You Invest in Luxury Goods?
While it's certainly feasible to profit from such investments, but it's not as easy as you might think.
Among the different categories of luxury goods, only one has outperformed the S&P 500 in terms of 10-year returns: Rare whiskey, boasting an impressive 280% return. Wine and watches have also performed admirably, yielding returns of 138% and 146%, respectively. However, the majority of luxury goods have seen returns hovering around or below the 100% mark over the past decade.
Based on those numbers, it may seem like rare whiskey is a home run. However, it's important to note that returns on luxury goods are subject to fluctuations, and what may be a lucrative investment one year could yield disappointing results the next. Despite whiskey's outstanding performance over the past decade, it experienced the worst performance in the last 12 months, with a negative return of -9%. On the contrary, art has emerged as the top performer in the past year, boasting an impressive 11% return.
Art leads The Biggest Luxury Sales of 2023
In 2023, the world of fine art took center stage as the standout performer in luxury investments. The year marked the 50th anniversary of Picasso's passing, prompting a wave of exhibitions honoring the artist's enduring legacy and influence on subsequent generations of creators. This commemoration had a significant impact on the art market, with total sales in the Picasso segment surpassing an impressive USD 502 million.
One particularly notable highlight was the sale of Picasso's iconic piece, Femme à la Montre, which fetched a staggering USD 139 million at Sotheby's auction house. This remarkable sale not only secured its place as the second-highest selling Picasso artwork at auction but also clinched the title of the best-selling artwork auctioned throughout the entire year.
Art Investment
Amidst the tumultuous currents of economic instability and political unrest, art investment emerges not just as a sanctuary but as the favored passion asset class among the discerning elite.
One of the inherent challenges of art investment lies in the subjective nature of valuing painting, as their allure is often in the eye of the beholder. You may recall the sale of Leonardo da Vinci’s rediscovered masterpiece, Salvator Mundi, which captured headlines in late 2017. The painting fetched a staggering $450 million, surpassing its estimated value of $100 million by more than fourfold.
While art investment poses challenges, pursuing art is straightforward. If you're passionate about art and enjoy creating, why not join the Y Talent Award? It's open to all students eager to leave their mark on the art world🎨
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For all further enquiries please email us at: arts@ruthineducation.co.uk
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Created by Wendy