In 2011, Investments of Passion attracted interest as a substitute investment especially among emerging market HNWIs.
- Luxury automobiles, boats and jets rose in value in 2011 but prices for specific luxury car brands varied.
- Art and antiques investments among emerging market HNWIs has driven up prices for regional and cultural historical art from China and Latin America. China (including Hong Kong) has overtaken the U.S. as the world’s largest market for art and antiques, representing 30% of the global art market in 2011 versus 29% for the U.S.
- Jewelry, gems, and watches experienced a rise in value in 2011 with diamonds outperforming the market again in 2011 with a 20% price increase from the previous year.
- Other collectibles such as wine, antiques, coins, and memorabilia witnessed divergent trends with the fine wine market down in 2011 while rare stamps continued to be an attractive option for investors with all stamp indices growing impressively in 2011.
- Sports investments remained down in 2011 and underperformed the equity markets.
Looking at 2012, the market for art and diamonds remains upbeat but most other categories have a mixed outlook and depend on the recovery of the global economy. HNWIs are clearly motivated to acquire investments of passion by more than financial considerations; however, such investments will continue to play a role in HNW portfolios going forward, especially for HNWIs seeking investments with a low correlation to global financial markets.
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