Lucy Birtwistle, relationship director at Stonehage Fleming, believes the roots of the luxury sales boom lie in building a legacy. She said: “Families want to diversify their assets, not just investments. To involve the wider family in decisions about wealth and how it is spent, there may be items that the next generation has a hand in choosing.” .”
Collecting luxury items can often become a highly addictive habit. Bell says, “In most cases, this journey develops into a real interest, even if it wasn't the original purpose.'' Many people have a collecting habit, which can lead to an exciting social scene or , it provides an insight into a world that is very different from the one they live in every day. ”
Bell added: “We're finding that more and more ultra-wealthy individuals are doing extensive independent research on artists, going to art fairs and visiting galleries while traveling for work. “I did,” he added. They enjoy discussing and debating artists and exhibitions, and that interest develops into a serious hobby or passion that drives them to collect, and they can be richly rewarded for the experience of doing so. Often you end up in a completely different place than where you started. ”
Grieve points to Harvey Cammell at Bonhams, saying: “Younger luxury consumers, Millennials and Gen Z, who are on the verge of reaching Generation Alpha, are taking a more active role in their auction purchases. “This has led to increased interest in new brands.” In the case of cars, there are post-millennium supercars such as the Lamborghini Veneno Roadster, which Bonhams sold for CHF 8.2 million; fast and furious The Nissan Skyline R34 GT-R that we sold for $1.3 million last year is highly collectible at this point. ”
So how will the ultra-rich spend their money in 2024? Rijhsinghani predicts there will be more emphasis on bespoke products. He says, “With the increase in cosmetic surgery and dental implants, I think there will be more attention paid not only to the product but also to people's own appearance and 'brand.' In summary, we are moving from high-end luxury products available to the ultra-wealthy to bespoke luxury products tailored specifically for the purchaser. ”
“At a macro level, our research shows that investor appetite for passion assets will continue in 2024, with over 53% of investors of all types motivated by the high return potential of passion assets. It has been shown that there are,” Grieve said. She went on to say, “One of the findings of our report is that over 55% of investors believe that jewelery and watches have the lowest risk and the highest return potential over the next five years.'' “This is followed by works of art, classic cars and supercars.” '
Birtwistle said recent internal research shows clients are increasingly choosing value-oriented investments. “Spending on philanthropy is likely to increase, as more than 85% of respondents consider philanthropy to be a central part of their purpose and values. Both of these areas of spending are It's often at the forefront of family planning for 2024 because it's a way to include the next generation in decisions. It's a great way to engage future heirs and educate them about the responsibilities that come with wealth. This is the method.”
For gold standard guidance on wealth management, taxes, arts and trusts, please visit: Tatler wealthy address book.