Partner, Kellie Jones from our Luxury Assets group attended the Wealth Report Luxury Investment Focus: What Do Collectors Want? Webinar this morning. Andrew Shirley of Knight Frank led a fascinating discussion focusing on wine, jewellery and coloured diamonds as luxury investments with Miles Davis, Emily Barber and Miri Chen. The discussion included insights into the impact Covid-19 has had on these sectors and investors. Interestingly, Emily Barber noted that as a result of Covid-19 there has been an increase in online jewellery auctions which has expanded the buyer base, particularly in the under 40s. The shift online has modernised the auction process and brought a younger audience to the auctions.
Each of the experts also offered advice for novice investors entering these areas.
In relation to coloured diamonds (fancy diamonds), Miri Chen explained that what really affects the performance of the investment is the number of diamonds in a certain colour category. At the moment, there is a significant shortage of pink diamonds in the 1 - 3 carat category. Her advice was that they are not conventional investments and may not produce profit in the short term but that they will preserve wealth over time. Most people buy them to wear and enjoy rather than to simply store away.
In relation to wine, Miles Davis advised a novice investor to talk to a lot of different people and wine merchants and to try to find someone independent to offer advice before purchase. He would not recommend dealing with anyone who calls out of the blue with something to sell. Don't rush in to anything, take a lot of advice and carry out research. His other key piece of advice was to ensure the wine is stored correctly.
Emily Barber's advice was similar in relation to jewellery. Buy from a reputable source and research the piece. An auction is a great way to start because you can handle a range of jewels at different price points. Another key piece of advice is to make sure that the jewels are accompanied by a reputable gemological report to ensure the jewels are what you believe them to be.