Investment in Luxury Items

National Numbers

Classic Cars

There’s an air of nostalgia around when it comes to owning a classic car. Should you only be investing in the classic models that remind you of the good old days? See how you can cash in and find out how you can invest in an affordable classic.

Car Investment

Wines

Collecting Fine wine can not only be an enjoyable hobby but also a lucrative investment. We take a look into the expected return on investing in wine, how long it takes to get a return and the best types of wine for your investment.

Wine Investment

Jewellery

The jewellery market is as confusing as any for a potential investor. How does it stack up against the likes of the classic car market though? We look into the potential market variables and whether to invest in shiny new or old era classics.

Jewellery Investment

Watches

More than just a timepiece, watches can prove to be a wily investment over time. But what models are the best investment? Are there any options for a buyer on a budget?

Watch Investment

Classic Cars

There’s an air of nostalgia around when it comes to owning a classic car. Should you only be investing in cars that remind you of the good old days though? We take a look at the rise of the classic car as a solid investment option and give you a few tips on how to find an affordable classic.

Jaguar C- type in original condition was auctioned off in Monaco for £5.75million

Performance by asset

Classic Cars

Watches

Jewellery

Wine

Source: Knight Frank Luxury investment index

1957 Ferrari 335 S Scaglietti was sold for £24.7million in Paris in February 2016

Investment Tips:

  • Don’t invest in something that wasn’t an initial success, old favourites age gracefully
  • Older isn’t always better. Many of today’s top investments were manufactured in the 80’s and 90’s
  • Consider the costs of restoring, maintaining and insuring the car you are thinking of buying. Take these costs into consideration when you are estimating your profit margin.
Jaguar

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Wines

Collecting Fine wine can not only be an enjoyable hobby but also a lucrative investment. We take a look into the expected return on investing in wine, how long it takes to get a return and the best types of wine for your investment.

Highly Sort after by collectors, a French Henri Jayer Cros Parantoux can fetch up to £4,000

Performance by asset

Classic Cars

Watches

Jewellery

Wine

Source: Knight Frank Luxury investment index

Described as 'Velvet and satin in bottles' by the Archbishop of Paris, a bottle of Domaine de la Romanee can fetch up to £8,000

Investment Tips:

  • Invest for a minimum of 5 years, as wines mature they in turn become rarer and more desirable to the buyer. This will drive prices even higher. Fine wine almost always produces a positive return for every 5 year holding period.
  • Purchasing from the main chateaux of Bordeaux will usually result in a steady profit margin. First-growth Bordeaux wines such as Chateau Lafite Rothschild, Mouton Rothchild, Margaux, Lataur or Haut-Brion are solid investments.
    Buy from the best regions in the world. Bordeaux, Burgundy, Italian, Rhone and Champagne.
  • Correct storage is vital. Fine wine must be stored in specific conditions in order to retain its future value. Temperature and humidity need to be controlled correctly.
Wines

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Vintage Jewellery

The jewellery market is as confusing as any for a potential investor. How does it stack up against the likes of the classic car market though? We look into the potential market variables and whether to invest in shiny new or old era classics.

£60 million-worth of vintage jewellery is lying around in British people's homes without them knowing, according to auction house Bonhams.

Performance by asset

Classic Cars

Watches

Jewellery

Wine

Source: Knight Frank Luxury investment index

Bonhams valuated a 4.50 carat single-stone ruby ring which had been inherited. It was later discovered to be a rare Burmese unheated stone, which sold for £134,500

Investment Tips:

  • It can take 30 years+ to get back initial value on a piece when you come to sell it. The value of jewellery can be influenced by underlying movements in the gold and gemstone markets. If you have a stone such as a diamond of more than 5 carats in size, then this value can rise dramatically and be the majority worth of the piece.
  • If you buy new jewellery, it’s subject to 20% VAT & 100% markup from the retailer, straight away you will be losing out. If buying second hand, look at cut, clarity, colour and carat.
  • The metals used in the construction of the piece are important. Platinum often retails at a similar price to gold but it retains its value less on the secondary market. Look into the metals quality composition. Higher karat gold such as 18 or 14 will hold its value more than 10 karat.
Jewellery

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Watches

More than just a timepiece, watches can prove to be a wily investment over time. But what models are the best investment? Are there any options for a buyer on a budget?

New watches depreciate like cars, buy 2nd hand.

Performance by asset

Classic Cars

Watches

Jewellery

Wine

Source: Knight Frank Luxury investment index

Buy a Rolex, the Daytona is the most profitable model, above the Submariner and the Deepsea.

On a budget

  • Monaco and Carrera from TAG Heuer, Chronomat, Transocean and Navitimer from Breitling. These models are all within £2-£4k range.
Watches

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