Jul 12, 2007

Study: Jewelry top 'investment of passion'

Jewelry represents the third-strongest category for "investments of passion" for high-net-worth individuals, according to a new report by Merrill Lynch and Capgemini.

The 2007 World Wealth Report finds investments of passion have become an important portfolio allocation for the world's 9.5 million high-net-worth individuals. Such investments include luxury collectibles (automobiles, boats and aircraft), jewelry, art, sports-related investments (professional teams, sailing and race horses) and other collectibles categories (wines, antiques, coins, etc.).

Luxury collectibles were the most popular investment of passion in 2006, accounting for 26 percent of all high-net-worth individuals' investments in this category.

The art market ranked second, accounting for 20 percent of all high-net-worth individuals' investments of passion. Wealthy investors—even those without a passion for collecting—increasingly see art as a method of diversifying their portfolios, given the low correlation between art prices and the cyclicality of stocks, bonds and real estate, according to the report.

Jewelry accounted for 16 percent of high-net-worth individuals' investments of passion internationally and 18 percent in North America.
Source: nationaljewelernetwork

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