Luxury collectibles are becoming increasingly sought-after as the world’s Ultra-High-Net-Worth Individuals seek ways to indulge their personal passions, diversify their assets, and protect wealth from market volatility.
While stocks, shares, and real estate are seen as traditional investments for UHNWIs, the demand for luxury collectibles is growing.
Here, we explore some of the top luxury investments in 2024 to gain insights into what the world’s wealthiest individuals have purchased this year.
What is a luxury collectible?
A luxury collectible is a high-end, rare, or limited-edition item that holds significant value due to its craftsmanship, brand, historical importance, or exclusivity. These items are often sought after by ultra-wealthy individuals for their uniqueness and potential as an investment, with many luxury collectibles consistently yielding spectacular growth.
Luxury collectibles have gained significant traction recently as the world’s wealthiest individuals seek alternative investments as part of a diversified portfolio strategy.
Some examples include rare watches, vintage cars, fine art, exclusive wines, designer handbags, and limited-edition jewellery. These collectibles not only represent status and taste but can also appreciate in value over time, making them a form of personal indulgence and financial asset.
What is the Luxury Investment Index?
The Luxury Investment Index (LII) is published annually by Knight Frank and tracks a weighted basket of 10 collectibles. According to the 2024 LII, luxury investments showed lacklustre results in 2023, despite the growing number of UHNWIs. This was likely driven by global market volatility and economic uncertainty.
While luxury collectibles showed a downward trend, falling by 1% overall, art, jewellery, watches, coins, and coloured diamonds all showed positive growth, with art (+11%) and jewellery (8+%) boasting inflation-busting growth.
This is only the second time in the history of the LII that luxury collectibles showed a negative trend.
What were the most expensive luxury purchases in 2024?
A Patek Phillipe Grandmaster Chime watch, an artwork by Leonora Carrington, and Babe Ruth’s jersey were among the most expensive luxury collectibles purchased in 2024.
Tracking some of the most expensive goods gives a fascinating insight into the purchasing habits of the world’s richest individuals.
The number of UHNWIs is growing – up 7.6% last year – according to the latest World Ultra Wealth Report 2024 – and now stands at a record high of 426,330 individuals.
With a growing number of UHNWIs comes increasing competition to secure the most exclusive and rare items, further pushing prices up. Here are some of the most expensive luxury purchases of 2024.
Top luxury investments 2024
Watches
Patek Philippe Grandmaster Chime – $5.4 million
This exquisite watch was sold at auction by Sotheby’s in June and is reportedly a timepiece of extraordinary quality, representing the pinnacle of Patek Philippe’s horological mastery.
The model was first introduced in 2016 and includes 20 complications, five chiming modes, and a reversible case. This particular watch was owned by legendary actor Sylvester Stallone, adding to its exclusivity. It is the most expensive watch ever sold by Sotheby’s in its 280-year history.
Watches by Patek Philippe, Rolex, and Audemars Piguet, in particular, are highly collectable.
Fine jewellery
The Eden Rose 10.20 Cara Round Brilliant Fancy Intense Pink Diamond – $13.3 million
Investment-grade jewellery has made steady returns over the years, and, as such, it is an appealing choice as a luxury collectible as part of a diversified investment portfolio.
The Eden Rose diamond ring was sold at Christie’s Magnificent Jewels auction 2024, which featured a dazzling array of rare stones and sought-after items of jewellery. The ring was the auction’s top lot, exceeding its estimate, with bids coming in from across the world, including the Americas, Europe, Asia Pacific, and the Middle East demonstrating the global appeal of jewellery and the primary wealth hubs of the super-rich.
Art
Leonora Carrington, Les Distractions de Dagobert, 1945 – $28.5 million
Art has historically been considered a top luxury investment, and, according to the LII, has been the top-performing luxury collectible asset class for over a decade. According to reports, the art auction industry is anticipated to reach over $38 billion in revenue this year.
While the sale of Les Distractions falls short of some of the most eye-watering sale prices- such as Leonardo Da Vinci’s Salvator Mundi, which sold for $450.3 million in 2017 – the sale of Carrington’s Les Distractions de Dagobert demonstrates the robustness of the fine art world.
Sold at Sotheby’s modern art evening sale in New York in May this year, Les Distractions de Dagobert has been hailed as the UK-born female artist’s definitive masterpiece. The artwork sold following a 10-minute bidding battle, with Argentine businessman Eduardo Costantini, the founder of the Museum of Latin American Art of Buenos Aires, placing the winning bid.
NFTs
The art asset class has further grown with the introduction of Non-Fungible Tokens (NFTs), driven by their popularity, celebrity endorsements, and scarcity. The rise of NFTs as luxury collectibles demonstrates the art market’s ability to adapt to changing circumstances and the consumer habits of a new, younger generation of UHNWIs.
The top-selling NFT in 2024 to date is CryptoPunk #8857 which sold for $6.63 million in an auction at OpenSea. However, this is eclipsed by Beeple’s Everydays: The First 500 Days, which sold at auction house Christie’s for more than £55 million in 2021.
Vintage wines
1972 Domaine de la Romanee-Conti La Tache – $150,000
Wine is a traditional luxury collectible with wide appeal. As such, the wine market has experienced considerable growth over the past few years, and is expected to expand to over $400 billion by 2028.
Auction house Bonhams broke records in June this year when it sold a rare 1972 Domaine de la Romanee-Conti La Tache for $150,000, the highest price the auction house has ever achieved for a single bottle of wine.
However, the price falls short of the most expensive bottle of wine ever sold at auction, which was in 2018 for a record-breaking $558,000. The wine in question was a 1945 Romanee-Conti. Its staggering price was due to its extreme rarity, with only 600 bottles produced that year.
Cars
La Rose Noire Droptail – $32 million
The luxury car market has grown significantly in recent years, with each passing year seeing a fleet of ever-more-luxurious cars. It was only in 2019 that the Bugatti Veyron made global headlines with its $1 million price tag. Fast-forward 15 years and it’s now La Rose Noir Droptail, priced at a cool $32 million.
This bespoke two-seater vehicle from Rolls Royce is the ultimate status symbol for the ultra-wealthy, the third car launched under the marque’s Coachbuild programme. The luxury car is limited to just four units, the first of which was delivered in 2023, making it the ultimate luxury collectable for the super-rich.
Superyachts
NEW SECRET – 109 million Euros | B2 – 109 million Euros | ALFA – 67 million Euros
A superyacht is the ultimate symbol of wealth, the reserve of the world’s wealthiest individuals. As the number of UHNWIs continues to grow, so does the yachting industry. Boat International reports that while sales have dipped in 2024, the top tier of the yacht sales market remains buoyant, with reports stating that the yacht sales market is now worth more than $9 billion.
Selling figures are often strictly confidential. However, we can look at some recent asking prices of luxury yachts that have recently changed hands in 2024. These include the 74-metre Amels NEW SECRET, with an asking price of 109 million Euros, B2 (now HBC), a 85.7-metre Abeking & Rasmussen superyacht with an asking price of 79 million Euros, and ALFA, a 70-metre Benetti superyacht, with a list price of 67 million Euros.
Other luxury yachts listed for sale, but not sold as of the time of publication, include H3, built by Oceanco, with an asking price of 295 million Euros, and the Lurssen-built LADY LARA, with an asking price of 230 million Euros.
Memorabilia
Babe Ruth’s “Called Shot” jersey – $24.1 million
Memorabilia, most notably sports and music memorabilia, is experiencing significant growth, offering unique appeal and the potential for robust returns. Babe Ruth’s “Called Shot” jersey made history in August this year when it became the most expensive sports memorabilia ever sold. The previous record was a Mickey Mantle rookie baseball card, which was sold for $12.6 million in 2022.
Sneakers & streetwear
The Dynasty Collection – $8 million
The sneaker and streetwear market has grown significantly in recent years, reflecting the younger generation’s growing interest in urban and street art. Limited-edition releases and exclusive collaborations have further fuelled demand and prices.
The world’s leading auction houses now boast dedicated departments for rare and collectable sneakers and streetwear. Christie’s Department X, for example, launched in 2022, and focuses on limited edition, game-worn, autographed, and highly collectible vintage sneakers and streetwear pieces.
In February this year, auction house Sotheby’s facilitated a record-breaking sneaker sale featuring six individual Air Jordan sneakers. Called The Dynasty Collection, the sneakers were worn by Michael Jordan during six of his NBA championships.
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