Global Wealthy Elites Shun Gold Hoarding, Shift Investments to These Items
The trend in luxury goods investment is shifting after price corrections in several collectible assets over the past two years. Wealthy collectors are now more selective, seeking items deemed rare, with strong ownership history, and high cultural value.
The latest Knight Frank Wealth Report 2026, cited from Gulf News, reveals that the luxury collectibles investment market is moving towards greater rationality after surging during the pandemic. Collectors are no longer merely chasing trends but focusing on scarcity, quality, and historical value of assets.
Knight Frank notes that the Luxury Investment Index fell only slightly by 0.4% in 2025. This figure is seen as indicating market stabilisation after many luxury asset categories previously experienced major price adjustments.
Impressionist art became the best-performing category in 2025 with a 13.6% increase. This surge was driven by major auction results, including Gustav Klimt’s painting Portrait of Elisabeth Lederer, which sold for US236.4millionorapproximatelyRp3.8trillion(assuminganexchangerateofRp16, 300/US), making it one of the most expensive modern artworks ever auctioned.
In addition to impressionist art, modern art rose 7.1%, post-war art grew 5.2%, and the top 100 artists category increased 3.6%. Meanwhile, European Old Masters works rose 1.7%, showing that collector interest remains high in rare and high-quality pieces.
In the luxury watch category, prices rose 5.1%, driven by strong demand for Patek Philippe Aquanaut and Nautilus models, as well as the market resilience of Rolex. Knight Frank states that watches are now one of the most watched luxury investment instruments among global collectors.
Knight Frank’s global research head, Liam Bailey, said the luxury goods investment market is now entering a more selective phase after previously experiencing rapid surges and corrections.
“Collectors are increasingly prioritising scarcity, provenance, and cultural resonance,” Bailey said.
Meanwhile, classic cars faced pressure. Classic car values fell 3.7% throughout 2025, although certain models like the Ferrari F50 still have high demand in major auctions in the United States and Europe.
A new trend is also evident in the second-hand luxury goods market. Collectors are now more interested in items with strong history and cultural value.
Knight Frank cites the personal Hermès Birkin bag owned by Jane Birkin, which sold for US$10.1 million or approximately Rp164 billion at auction. Luxury handbags became one of the most stable categories throughout 2025, with value declining only 0.2%.
On the other hand, rare coloured diamonds fell just 1% over the past year, while blue diamonds saw price increases in Q4-2025.
Knight Frank also notes that more investors under 40 years old are entering the luxury collectibles market through fractional ownership platforms. This scheme allows investors to buy partial ownership of expensive assets such as artworks, classic cars, or watches without purchasing them outright.