Hermés handbags and whisky no longer top; wine most sought after product: Luxury index

Rare bottles of scotch and Hermés handbags – are no longer the most sought after products, says a new luxury index. The two products have relinquished their places at the top recording negative 12-month growth making way for wine. Wine is the front-runner in the 12 months to the end of June 2021 says a research by Knight Frank conducted in London.

The Knight Frank Luxury Investment Index compiled by Knight Frank Research uses data from Art Market Research (art, coins, furniture, handbags, jewellery and watches), Fancy Color Research Foundation (coloured diamonds), HAGI (cars), Rare Whisky 101 and Wine Owners.

The index from (Q2 in 2021), wine has knocked Hermés handbags and whisky off the two from the one positions in the index in recent years, with prices of investment grade wine up 13% over 12 months to the end of June 2021.

Wine Owners’ Nick Martin who compiles the data for The Knight Frank Fine Wine Icons Index says one market that has been doing well this year is Bordeaux. Burgundy, on the other hand, is taking a bit of a breather.”

A recognition that some back vintages including 1996 and 2000 Bordeauxs, represent great value for money is helping attract more interest from collectors.

Looking at the classic car data from HAGI, which provides the data for the KFLII, the classic car market is in a good place with the value of a selection of the world’s rarest and most collectible vehicles rising 4% over the year to June 2021. Most interest is coming from experienced collectors and dealers who are prepared to pay top prices for the best cars.

Along with wine and cars, watches make the top-3 podium for this installment of the KFLII with Art Market Research’s basket of collectible timepieces showing annual growth of 5%.

The art market on the other hand endured a bumpy period after the covid-19 pandemic went global. The Art market Research All Art Index, which tracks the auction value of works produced by the world’s top 10,000 artists fell or remained flat for 11 consecutive months after peaking in April 2020 – a cumulative drop of 13%.

However, from April to July of this year much of that ground was recovered with the index recording growth of 10%. In May alone, $2.9 billion of art was auctioned around the world. Illustrating the allure of the street art genre, one of the most expensive pieces to sell was In this Case, part of Jean-Michel Basquiat’s skull series, which went under the hammer with Christie’s New York for $93 million.

Change

12-month

10-year

Wine

13%

119%

Watches

5%

87%

Cars

4%

180%

KFLII

3%

122%

Furniture

1%

21%

Coloured Diamonds

0%

27%

Jewellery

0%

61%

Coins

-1%

72%

Art

-2%

71%

Handbags

-3%

91%

Rare Whisky

-4%

483%

All data to June 2021 except coins to December 2020

Source: Compiled by Knight Frank Research using data from Art Market Research (art, coins, furniture, handbags, jewellery and watches), Fancy Color Research Foundation (coloured diamonds), HAGI (cars), Rare Whisky 101 and Wine Owners