Knight Frank Luxury Investment Index continues to climb

Continued growth in the value of classic cars helped to push the Knight Frank Luxury Index up by 8% in the 12 months to the end of Q3 2013.

The Knight Frank Luxury investment Index combines the performance of nine luxury assets including art, classic cars, watches and stamps, into one composite index.

Over a 10-year period the index has recorded growth of 179%, outperforming many more mainstream investments such as the FTSE 100.

Overall, classic cars have shown the strongest 10-year performance, while furniture has actually fallen in value. See the table below for the performance of the individual segments of KFLII.

The Knight Frank Luxury Investment Index (KFLII)

Collectable 12-month 5-year 10-year
Furniture

-2%

-16%

-19%

Chinese   ceramics

3%

45%

77%

Watches

4%

32%

82%

Jewellery

3%

49%

156%

Wine  

3%

5%

176%

Art

-3%

2%

193%

Coins

10%

91%

227%

Stamps

5%

50%

250%

Cars

28%

121%

456%

KFLLI

8%

38%

179%

As well as KFLII, our analysis of luxury spending trends also includes a new Luxury Opportunities Index compiled by Ledbury Research for The Wealth Report.

The index pinpoints the 10 countries with the fastest growing potential for luxury spending in the short and medium term. It tracks the growth in four sectors: Luxury footprint, Wealth Creation, Premium air travel and Economic growth.

Africa scores highly in the index, accounting for five of the 10 locations, but the Middle East takes the top three slots with Qatar in pole position. The US is the only developed nation to feature and there are no Asian countries on the list.

The Luxury Opportunities Index

Rank Location
1 Qatar
2 UAE
3 Saudi Arabia
4 Ghana
5 US
6 Kenya
7 Nigeria
8 South Africa
9 Zimbabwe
10 Mexico

 

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