From coins to classic cars: which investments have really paid off?
Knight Frank Luxury Investment Index
Each year global estate agency Knight Frank publishes its Wealth Report, revealing which assets have increased most in value and which haven't done so well. From ceramics to classic cars, here's how 10 investments have performed.
10. Antique furniture
At the bottom of the table are antiques. In 2016, the value of antiques shrank by 5%, and they've dropped by a staggering 31% over the past decade. Early to mid-20th century pieces lost the least value in the past few years.
10. Antique furniture
Regency-era pieces from the 19th century have dropped most. However much you love them, they have sadly fallen out of fashion and so has their value. These once revered items lost over 30% of their value in the past 10 years.
9. Chinese ceramics
Be very wary when purchasing antique Chinese ceramic pieces. Over the last decade their value went up by 6%, but in 2016 they actually lost value. If you are looking to buy, stick to Ming and Qing dynasty pieces as they historically have more lasting value.
9. Chinese ceramics
Once fashionable, Han to Yuan dynasty pieces, like this kiln, have lost value in the last decade. When investing in antique Chinese ceramics, oldest tends to be better, but always watch out for fakes.
8. Watches
Watches can make or break an outfit, but they also make very steady investments. In 2016, their value went up by just 4%, but they have grown by 66% over the past decade. Patek Philippe models did best out of all watch brands last year. Experts advise you to save all of the boxes and paperwork, as this will help boost their resale value down the line.
8. Watches
Rolexes are the most accessible fine watch brand, but you'll get better returns with classic Cartier models. Though watches have sentimental value, their worth has not increased nearly as much as some of the goods further up the table.
7. Coloured diamonds
Coloured diamonds may have only grown 0.4% in 2016, but over the decade their value has soared by 111%; much more than their clear cousins. The Oppenheimer Blue, a 14.62-carat diamond, was recently sold by Christie’s Geneva for almost £41 million, making it the most expensive jewel to ever sell at auction, and underlying the popularity of blue stones.
7. Coloured diamonds
Yellow diamonds saw their value increase by just under 50% in the decade to 2016. So, when choosing your diamonds, remember colour can matter just as much as size.
6. Stamps
Though the value of stamps only grew by 1% in 2016, it doesn’t mean you should stop filling up your stamp book. Over the previous decade, their worth grew by 133%.
6. Stamps
But while they are a good investment for passionate collectors, stamp firm Stanley Gibbons advises that they should not make up more than 10% of any investment portfolio.
5. Art
Unfortunately for art lovers, art did not fare as well in 2016 as it has done in previous years and it fell by 14%. However, it can still be worth investing in. Over the past decade, the sector has still grown by 139%. Contemporary art performed best of all, going up close to 300%.
5. Art
Modern art lovers, you could be in for a treat as this style has doubled in value over the past 10 years. Art can be a tricky investment, as it is closely linked to trends and fashions, which are often unpredictable. Experts advise to only buy what you love – if the value drops, at least it will still look good on your wall!
4. Jewellery
As well as being pretty, jewels can be an excellent investment. Though jewellery only grew 3% in 2016, over the preceding decade it shot up by 147%. Pearls are the best-performing jewels, with their value tripling in 10 years.
4. Jewellery
Art Deco and Belle Belle Epoque pieces are also doing well, almost doubling in value over 10 years. Those investing in jewels should be careful though; the condition of the piece, provenance and style will all influence its worth. What you consider to be most beautiful might not be the most sellable.
3. Coins
Coin collectors will be thrilled to know that the value of coins shot up by 6% in 2016, and grew over 195% in the past decade.
3. Coins
Coin collecting is generally considered to be a safe investment as the pieces will always be worth at least as much as their weight in precious metal. Though their returns are much smaller than items further up the list, they are certainly steady.
2. Classic Cars
The value of classic cars has been motoring away. Over the past year, the value of vintage motors has grown by 9%, and by 457% over the 10 years to 2016, according to Knight Frank.
2. Classic Cars
So which cars are worth the big bucks? The index revealed Porsches are the best-performing cars of the past decade, but Ferraris are a close second. But Hagerty vice president of valuation services, Brian Rabold, explains the trend is shifting towards newer models: “Our top 1,000 clients are buying cars from the 2000s like never before.”
1. Wine
Fine wines top the Knight Frank Luxury Investment Index for the first time ever. They grew in value by a whopping 24% in 2016. Over the past decade the value of wine has grown, on average, by 267%. Californian wines were by far the best-performing variety over the decade, increasing by over 440%.
1. Wine
In 2016, Bordeaux was where the money was being made. "The top Bordeaux blue chips drove the entire market, growing 9% to the end of June," Nick Martin of Wine Owners says. And he expects the French classic to continue its upwards trajectory in 2017.