Each year, the Knight Frank Luxury Investment Index (KFLII) provides a glimpse into the world of luxury collectibles and, most notably, their performance.
Despite financial markets soaring in 2024 and the growing number of UHNWIs, the KFLII fell by 3.3% in Q4 2024, the third time in the KFLII’s history that luxury collectibles have shown a downward trajectory. In 2023, the KFLII also showed negative growth, down 1%.
The 2025 Luxury Investment Index report notes that the fall has left “collectors and investors to navigate a changing landscape where scarcity no longer guarantees returns.” While the fall was modest, it reflects a natural recalibration following years of robust growth.
However, despite this fall across two consecutive years, the KFLII has provided superb returns, with an overall increase of 21.4% over the past five years and a 72.6% increase over the past decade. In monetary terms, a US$1 million investment in 2005 would now be worth $5.4 million. As the 2025 KFLII report notes, luxury collectors invest for the long haul and primarily for the joy of ownership.
Luxury collectibles have become a popular way for the world’s wealthiest individuals to indulge their passion while diversifying their asset portfolio beyond more traditional investments like stocks and shares. Each year, the KFLII tracks a weighted basket of 10 luxury collectables: handbags, jewellery, coins, watches, cars, colour diamonds, furniture, whisky, wine, and art.
Here, we explore the performance of the KFLII 10 luxury collectibles and the passion investments of the world’s wealthiest, including some of the top-selling luxury collectibles in 2024.
Passion investments: Luxury collectibles 2025
Despite an overall downward trajectory, handbags, jewellery, coins, watches, and cars all showed growth in 2024, according to the 2025 Luxury Investment Index. The best-performing luxury collectible was handbags, with a growth of 2.8%, while cars showed the smallest growth at just 1.2%. However, this growth is modest, especially considering the global inflation rate was 5.8%, according to the International Monetary Fund.
At the other end of the spectrum, art was the poorest performing luxury collectible, down 18.3%.
Handbags
+2.8%
5-year change +34%
10-year change +85.5%
The most expensive handbag sold at auction in 2024 was a Hermès Kelly 25 Himalaya with Diamond Hardware. This specific bag features 18K white gold hardware adorned with 298 diamonds, totaling 3.50 carats. The clasp alone holds 2.10 carats (40 diamonds), and the padlock features 1.40 carats. It was sold by the auction house Sotheby’s for $330,000.
Hermes bags are amongst the coveted bags with luxury collectors, with rare bags selling for record-breaking prices. “The ultimate classic handbag, the Hermes Birkin in black Togo leather, is now more valuable than ever when sold on the secondary market,” notes Sebastian Duthy of Art Market Research. Other sought-after and rare luxury collectible handbags include those by Louis Vuitton and Chanel.
Jewellery
+2.3%
5-year change +20.2%
10-year change +33.5%
In November 2024, a striking historical diamond necklace linked to the French queen Marie Antoinette sold at Sotheby’s in Geneva for $4.8 million, double the estimated amount. The Georgian piece contains around 500 diamonds.
While rising modestly in 2024, jewellery remains a reliable luxury collectible investment, especially rare items with historical provenance or from prestigious brands like Van Cleef & Arpels, Cartier, Tiffany & Co., and Boodles.
Coins
+2.1%
5-year change +23.6%
10-year change +47.5%
A gold Brutus coin, which was struck between the chaotic years after Julius Caesar’s murder in March 44 BC and the Battle of Philippi in October 42 BC, sold for more than $ 2 million. Only 17 of these coins are known to have survived.
Rare and historical coins have shown continued growth over the past decade, providing investors seeking alternative investments with healthy returns and a reliable store of value.
Watches
+1.7%
5-year change +52.7%
10-year change +125.1%
Watches linked to famous names often fetch high prices. In a June 2024 Sotheby’s auction, a Patek Philippe Grandmaster Chime 6300 owned by Hollywood icon Sylvester Stallone sold for $5.4 million.
Luxury collectible watches have provided extraordinary returns over the past decade, up more than 125%. High-end collectible watch brands include Rolex, Patek Philippe, Breitling, Omega, and Cartier, with these horology brands showcasing exceptional craftsmanship.
Cars
+1.2%
5-year change +29.5%
10-year change +58.9%
In August, Sotheby’s auctioned a 1960 Ferrari 250GT SWB California Spyder by Scaglietti. The classic car, offered for the first time for sale publicly, fetched $ 17 million.
Cars, especially pre-owned classic and vintage models, have shown steady returns over the past decade and are proving a popular portfolio diversification, with sales of collectable cars accelerating at an unprecedented pace, notes the 2025 Luxury Investment Index report.
Those with a racing pedigree, exceptional design and engineering, or a link to pop culture have achieved record-breaking results at auction.
Colour diamonds
Down – 2.2%
5-year change +4.8%
10-year change +3.8%
The Eden Rose was one of the highest-performing coloured diamonds in 2024, selling at Christie’s for $13.3 million. The Eden Rose is a 10.20 carat Round Brilliant Fancy Intense Pink Diamond.
While colour diamonds have provided modest returns, they are still a popular luxury collectible, providing a highly portable store of wealth. Like jewellery, coulour diamonds with historical provenance or from high-end jewellery brands will be particularly sought-after. Gary Burton, managing director of London jeweller Hancocks, notes that Burmese pigeon blood rubies, Colombian emeralds, and velvet blue Kashmir sapphires are the go-to stones.
Furniture
Down – 2.8%
5-year change +60.5%
10-year change +140.9%
An elegant commode featuring ebony wood panelling with gold lacquer extracted from Japanese pieces of art and furniture sold for $819,000 at an auction held by Christie’s in New York in December 2024. The Japanese-French hybrid furniture style was popular during King Louis XV’s reign, when European nobility imported Japanese and other Asian goods, which were reflected in the design of European furniture.
Besides whisky, furniture has provided the second highest returns over the past decade, showing the strength of this luxury collectible.
Whisky
Down – 9%
5-year change – down 9.9%
10-year change +191.7%
A 30-year-old bottle of The Emerald Isle, from The Craft Irish Whiskey Co., became the world’s most expensive bottle of whisky when it sold for $2.8 million in early 2024, just surpassing a previous record-breaking sale of a bottle of The Macallan 1926. The Emerald Isle is the rarest triple-distilled single malt in existence. It was sold to American collector Mike Daley.
While whisky was down by 9% this year, the long-term return of this luxury collectible cannot be overstated – up more than 190% in the past decade, making it the best long-term performing luxury collectible.
The 2025 Luxury Investment Index report attributes the decline in this luxury collectible to a rapid influx of stock returning to the secondary market after a decade of strong growth. However, demand is expected to stabilise, offering continued long-term appreciation.
Wine
Down – 9.1%
5-year change +8.3%
10-year change +37.4%
The most expensive wine sold in 2024 was a 1978 Domaine Henri Jayer Richebourg Magnum, which fetched just over US$130,000 at an online auction held by a Geneva-based auction house. The bottle came directly from the cellar of the legendary Burgundy winemaker Henri Jayer and was reportedly in near mint condition.
Overstocking and changing consumption patterns have contributed to the decline of this luxury collectible over the past year. However, it has provided healthy long-term returns for investors, up more than 37% in the past decade. This price correction offers a prime opportunity for new rare wine investors to enter the market.
Art
Down – 18.3%
5-year change +1.9%
10-year change +54%
Maurizio Cattelan’s duct-taped banana made global headlines and created endless memes when it fetched over $6 million at Sotheby’s. For fans of more traditional art, René Magritte’s L’Empire des Lumieres sold for $121 million at Christie’s, setting a new record for the surrealist master.
According to the 2025 Luxury Investment Index, global art sales peaked in 2022 with record sales of $7.8 billion, but slumped in 2024 to $4.1 billion. This lack of activity impacted sales achieved, with 70% of art sales achieving their high estimate, compared to 87% in 2021. It’s worth noting here that in the 2024 KFLII, art boasted inflation-busting growth of 11%.
Despite art’s lacklustre performance in the 2025 KFLII, it remains one of the most popular luxury collectibles, providing solid returns for investors over the long term.
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