The 2013 World Wealth Report found that almost 32 per cent of high net worth individuals (HNWIs) — those with US$1 million (A$1.1 m) or more in investable assets — named jewellery, gemstones and watches as their preferred “investment of passion”. It is the second consecutive year that the category has come out on top.
In comparison, almost 25 per cent of HNWIs admitted they spent money on collectibles such as coins, wine and antiques, while luxury automobiles, boats and jets accounted for 19 per cent of allocated passion investments. Almost 17 per cent of HNWIs allocated funds for artwork and 8 per cent for sports-related investments.
According to the study, conducted by technology company Capgemini and RBC Wealth Management, 33.5 per cent of wealthy people in the Asia-Pacific region spent money on jewellery, gemstones and watches. This figure was topped only by the Middle East, where 35 per cent invested on these items, and Latin America with 34 per cent.
Wealth market remains strong
The report also found that both global HNWI population and investable wealth increased to record levels in 2012. After remaining flat in 2011, the population of HNWIs increased by 9.2 per cent worldwide to reach 12 million. Global HNWI wealth was also said to have rebounded substantially, increasing by 10 per cent to US$46.2 trillion (A$50.5 t).
North America and Asia-Pacific, the two largest HNWI regions, drove global growth, expanding 11.5 per cent and 9.4 per cent respectively in population, and 11.7 per cent and 12.2 per cent in wealth.
The report highlighted that while North America reclaimed its position (from Asia-Pacific) as the largest HNWI market, Asia-Pacific comprises the majority of the fastest-growing HNWI country markets and is expected to surpass the region again in the near future.
The World Wealth Report was first published in 1996 and this year’s edition was based on data from 71 countries.
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