Luxury on the rebound

Isaac Mostovicz writes that that investment in luxury items are on the up again, particularly in developing markets such as China...

If we needed further proof that the world’s super-rich have rebounded from the financial crisis, we need look no further than this recent article in Reuters showing that the demand for art, watches, vintage cars and other luxury items expanded in 2010, with collectibles such as boats and jets accounting for almost a third of these investments.

Whilst taste and personality – whether they are Lambda or Theta, for example – determines what each individual will enjoy investing in, certain items such as artworks are more likely to be acquired for their potential to gain value.

The demand for diamonds has benefited from rising prices of raw materials, as they are seen as a particularly safe investment.

This demand has partly been spurred on by wealth in growing economies, particularly those in Asia (see my recent post on Chinese luxury bathrooms), which are reviving markets in ‘investment’ pieces as well as dictating the luxury goods that are manufactured in the first place. With Asia surpassing Europe in number of millionaires for the first time ever last year, it is clear that to see new luxury trends emerging we must cast our eyes East.

Luxury Homes by VAPF says of this article...

China is fast becoming the world’s top luxury good consumer, and the fact that they idolise the European way of life means that they are purchasing all things that symbolise a proximity to European citizens, including luxury homes in Spain, a favourite holiday home destination for many Europeans.

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