28.03.2024
In this article:
The Knight Frank Wealth Report, a quarterly publication produced by the renowned real estate consultancy Knight Frank, is described as ‘the ultimate guide to prime property markets, global wealth distribution, and the threats and opportunities for wealth’. It delivers comprehensive insights into high-end investments, including fine art, rare wines, classic cars, and luxury watches. This report offers a blend of data-driven analyses, expert opinions, and market forecasts, designed to assist investors and collectors in making well-informed decisions regarding luxury assets. This is our by-category summary of the luxury collectibles section of the Q4 2023 report, which was published in March of this year. In this context, we also give you an update on our recent successful exits to emphasise how Timeless capitalises on market developments.
This is Part II of our Knight Frank Report series, where you can look forward to updates on luxury cars, jewellery, diamonds and handbags. In Part I, you’ll find highlights on art, luxury watches and fine spirits.
No time but you are still curious? Click here for the key-takeways.
In the past year, the luxury car market experienced a downturn, with a decrease in value of -6%, contrasting its +82% growth over the previous decade. Dietrich Hatlapa, a renowned classic car expert, considers this decline relatively mild, especially after a +22% increase in the HAGI Top Index in 2022. The market’s small size means that even slight shifts in portfolio allocations can significantly impact values, and profit-taking might have also played a role.
Moreover, well-known brands such as BMW and Lamborghini, favoured by younger collectors, saw increases of +9% and +18%, respectively, bucking the overall trend. Amidst the year’s fluctuations, a notable highlight was the auction of a 1962 Ferrari 330 LM/250 GTO at RM Sotheby’s, which commanded an impressive US$ 51.7 million.
1969 Porsche 911 T
Jewellery and coloured diamonds emerged as strong performers among investment assets, with jewellery appreciating by +8%, ranking it second only to art, and coloured diamonds rising by +2%. Miri Chen, CEO of the Fancy Color Research Foundation, noted a preference shift towards smaller, highly saturated coloured diamonds in 2023, despite a slight dip in the prices of pink and blue diamonds. According to AMR’s Duthy, the demand for high-quality coloured gemstones also stands out in the jewellery market, alongside iconic signature pieces of jewellery, privately owned collectors’ pieces, and historically significant treasures.The popularity of coloured gemstones is reflected in staggering auction results:
Last year, luxury handbags experienced a -4% decline in value, contrasting with the +67% increase witnessed over the past decade. This decrease, particularly in the secondary market, aligns closely with fluctuations in the retail sector and a dip in top luxury brands’ share prices last autumn, which influenced collector behaviour.
Despite this, certain handbags, like the Birkin in Togo leather and the iconic Kelly in Crocodile, have seen price increases, driven by their enduring popularity and exceptional craftsmanship. The standout sale was the Himalayan Niloticus crocodile diamond Birkin 25, which fetched US$ 0.36 million at Christie’s, underscoring the persistent demand for premium, rare pieces.
Art, classic cars and diamonds have long been a sought-after asset class among wealthy and institutional investors. According to the latest Knight Frank Report Q4 2023, UHNWIs allocate an average of 20% of their assets to luxury investments.
Timeless gives everyone access to this proven form of investment. From as little as €50* per fraction, you have the opportunity to invest in rare collector’s items and benefit from any appreciation in value. Our team of experts constantly analyses the market, evaluates trends and curates rare treasures with great potential for your portfolio.
We have recently achieved several successful exits with strong profits for our investors.
The year 2024 is a milestone for us: in less than four months, we have already sold four of our fully financed assets, with an increase in value of up to +31.03 %. With two more assets approved for sale and transactions in the process of being finalised, this achievement is a testament to our strategic expertise and the continued appeal of luxury assets.
Discover the power of collectibles with Timeless.
*Incl. VAT, plus service fee and management fee.
