The Wealth Report 2023: Art Leads the Knight Frank Luxury Investment Index

Collectable art led Douglas Elliman and Knight Frank’s Luxury Investment Index (KFLII) in 2022, with prices rising by 29% according to this year’s edition of The Wealth Report . The KFLII which tracks the value of 10 investments of passion, rose by a healthy 16% during the year, comfortably beating inflation and outperforming the majority of mainstream investment classes, including equities and even gold. Download the 2023 Wealth Report Within the index, which is weighted to reflect the “collectability” of each of its constituents, half of the assets saw double-digit growth in 2022. Classic cars revved up the index, coming in second place to art with prices rising 25% – the strongest finish for nine years. Watches took third place on the KFLII podium in 2022, up 18%. Andrew Shirley, author of the Knight Frank Luxury Investment Index said: “The results of our index and some of the staggering sums paid for investments of passion over the past 12 months highlight just how important their collections are to UHNWIs and how resilient many of these asset classes are to economic and geo-political events. Gen Z and Millennial wealth is also having a profound impact with new collectable markets emerging all the time.” Sebastian Duthy of Art Market Research, which provides the data for a number of asset classes in the KFLII, said: “Much of the performance of art was driven by the stellar prices paid for museum quality works of art by ultra-wealthy collectors. Several single owner collections produced totals in excess of US$2.5 billion, more than doubling collection sales in 2021.” A US$143 million Mercedes-Benz Uhlenhaut Coupé comfortably set a new record for the most expensive car ever sold last year. Dietrich Hatlapa of HAGI , which tracks the very top end of the market for the KFLII said: “High-end collectors are back in the market after the Covid-19 pandemic saw the postponement of many sales.” The watch market at the top three auction houses grew 33% in 2022 to a total of £475 million, this included 40 watches that sold for over £1 million, 12 more than the previous year. The Knight Frank wine index recorded growth of 10% – respectable, but down on 2021’s 16% rise. Whisky, although still KFLII’s 10-year leader by a good margin (+373%), was one of 2022’s weakest performers with growth of just 3%. The Knight Frank Luxury Investment Index Q4 2022  Luxury Investment assets 12-month 10-year Top-selling items Art 29% 91% Andy Warhol Shot Sage Blue Marilyn , 1964 – US$195m, Christie’s Cars 25% 185% Mercedes-Benz 300 SLR Uhlenhaut Coupé – US$143m, Sotheby’s Watches 18% 147% Gobbi Milano-signed Patek Philippe Ref.2499 – US$7.7m, Sotheby’s KFLII 16% 137% – Handbags 15% 74% Hermès Himalaya Crocodile Kelly – US$353K, Sotheby’s Wine 10% 162% Methuselah of 2007 Domaine de la Romanée-Conti – US$361K, Sotheby’s Coins 8% 59% 1821 US$5 denomination gold piece “Half Eagle” – US$4.6m, Hermitage Auctions Jewellery 6% 44% The Williamson Pink Star, a 11.5-carat fancy vivid pink diamond ring – US$57.7m, Sotheby’s Furniture 4% 34% Ming Dynasty chair – US$15.9m, Sotheby’s Coloured diamonds 4% 16% The De Beers Blue Diamond, 15.1 carat fancy vivid blue – US$57.5m, Sotheby’s Rare Whisky 3% 373% The Macallan The Reach, 81 year old single malt – US$300K, Sotheby’s Sources: Compiled by Knight Frank Research using data from Art Market Research (art, coins, furniture, handbags, jewellery and watches), Fancy Color Research Foundation (coloured diamonds), HAGI (cars), Rare Whisky 101 and Wine Owners Notes: All data to Q4 2022 KFLII is a weighted average of individual asset performance