{"id":161577,"date":"2017-03-05T17:00:16","date_gmt":"2017-03-05T15:00:16","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=161577"},"modified":"2017-03-05T16:24:45","modified_gmt":"2017-03-05T14:24:45","slug":"the-one-asset-the-worlds-richest-people-are-stockpiling-at-a-blistering-rate","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/wealth\/161577\/the-one-asset-the-worlds-richest-people-are-stockpiling-at-a-blistering-rate\/","title":{"rendered":"The one asset the world’s richest people are piling into"},"content":{"rendered":"

Commercial and\u00a0residential property<\/span> group, Knight Frank has published its Wealth Report for 2017 detailing\u00a0a one asset that the world’s richest people are beginning to stockpile.<\/p>\n

According to the Knight Frank Luxury Investment Index (KFLII) – which details what liquid assets\u00a0the world’s billionaires are spending their money on – investment grade wine<\/strong>\u00a0has finally beaten classic cars to the winner\u2019s podium.<\/p>\n

The Knight Frank Fine Wine Icons Index, compiled by Wine Owners, recorded growth of 24% in 2016, compared to\u00a0a relatively lacklustre 9% increase in the value of the HAGI Top Index<\/a>, which tracks the performance of the world\u2019s most desirable classic cars, noted the report.<\/p>\n

Wine\u2019s stellar performance was driven by exceptionally strong growth in key areas across the world and in particular the resurgence of the top Bordeaux chateaux, which form the backbone of most investment cellars, said\u00a0Nick Martin of Wine Owners.<\/p>\n

\u201cIn 2015 we saw growth of around 8% for the whole of the Bordeaux region, off the back of steep declines in 2012 to 2014 following the bursting of the Chinese-induced Bordeaux bubble in late 2011.”<\/p>\n

\u201cBut 2016 was completely different. The top Bordeaux blue chips drove the entire market, growing 9% to the end of June,” he said.<\/p>\n

“Brexit turbo-charged the market due to the devaluation of sterling, feeding more positive sentiment into a market that had already been gathering significant momentum. The first growths rose a further 18% between June and November 2016, resulting in an annualised performance of over 30%.\u201d<\/p>\n

However despite wine’s sudden and explosive popularity there were also other familiar investment assets that the world’s richest spent their money on over the past year.<\/p>\n

\n

Cars<\/strong><\/h3>\n

<\/a><\/p>\n

“Despite a year of slowdown, classic and luxury cars still boasted an annual growth\u00a0rate of a very respectable 9%,” said HAGI\u2019s Dietrich Hatlapa.<\/p>\n

“But set against total growth of 151% over the past five years, it is clear that the market has dropped down a few gears. Those who were in it just for the money have moved on. The market is now more in the hands of the collectors and specialists, which I think is good news for the real enthusiast,” said Hatlapa.<\/p>\n

\n

Jewellery<\/b>
\n<\/span><\/h3>\n

<\/a><\/p>\n

Several of the other asset classes that feature in KFLII also produced some record-breakers in 2016, even though their overall performance was relatively muted, noted the report.<\/p>\n

The Jewellery world was most notably in the spotlight this past year\u00a0due to the sale of the Oppenheimer Blue, a vivid blue 14.62-carat diamond sold by Christie\u2019s Geneva for the equivalent of almost $51 million (R660 million) , making it the most expensive jewel to ever sell at auction.<\/p>\n

\u201cThis has certainly been the year of the Kashmir sapphire,\u201d said Jean Ghika, Head of Jewellery for Bonhams UK and Europe.<\/p>\n

\u201cThey have performed well at our auctions in London, New York and Hong Kong and are among the most highly prized gems for serious collectors.\u201d<\/p>\n

\n

Art<\/strong><\/h3>\n

<\/a><\/p>\n

Despite growth in\u00a0wine, the KFLII, which tracks the performance of 10 collectable investments of passion, still posted annual\u00a0growth of just 2% – its weakest performance since 2009\u2019s 2% drop.<\/p>\n

The biggest contributor to last year\u2019s slide was art, which dropped by 14% according to auction data analysed for The Wealth Report by Art Market Research.<\/p>\n

There was, however, a marked variation in performance across different genres. European Impressionist painters, such as Matisse and C\u00e9zanne, saw the largest annual drop in the value of works sold at auction, while 19th-century artists like Constable and Turner rose by 19%.<\/p>\n

Modern and contemporary works, which have previously been the standout performers in the art index, recorded drops of 8% and 2% respectively.<\/p>\n

\n

Read:\u00a0Here is how many billionaires live in South Africa<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Knight Frank has published its Wealth Report for 2017, revealing an unusual asset that the world’s richest people have begun to stockpile at an alarming rate over the last year.<\/p>\n","protected":false},"author":10,"featured_media":161599,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9880],"tags":[26,7585],"class_list":["post-161577","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wealth","tag-headline","tag-knight-frank"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/161577","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=161577"}],"version-history":[{"count":17,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/161577\/revisions"}],"predecessor-version":[{"id":161983,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/161577\/revisions\/161983"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/161599"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=161577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=161577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=161577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}