The surprising passions paying off for investors
The Knight Frank Luxury Investment Index reveals investments of passion are paying strong dividends, in some areas at least
4 min
Art was the investment of passion that gained the most in value in 2023, according to Knight Frank’s Luxury Investment Index (KFLII). This is the second consecutive year that art has risen the most among the 10 popular investments tracked by the index, up 11 percent in 2023 and 29 percent in 2022. Art was followed by 8 percent growth in jewellery, 5 percent growth in watches, 4 percent growth in coins and 2 percent growth in coloured diamonds last year.
The weakest performers were rare whisky bottles, which lost nine percent of their value, classic cars down six percent and designer handbags down four percent. Luxury collectables are typically held by ultra-high-net-worth individuals (UHNWIs) who have a net worth of US$30 million or more. Knight Frank research shows 20 percent of UHNWI investment asset portfolios are allocated to collectables.
In 2023, the KFLII fell for only the second time, with prices down 1 percent on average.
“Despite record-breaking individual sales in 2023, a surge in financial market returns contributed to a shift in allocations impacting on luxury asset value,” the report said. “… our assessment reveals a need for an ever more discerning approach from investors, with significant volatility by sub-market.”
Sebastian Duthy of AMR said the 2023 art auction year began with notable sales including a record price for a Bronzino piece. But confidence waned as the year went on.
“It was telling that in May, Sotheby’s inserted one of its top Old Master lots – a Rubens’ portrait – into a 20th Century Modern evening sale. But by then, it was clear that the confidence among sellers, set by the previous year’s record-busting figures, was ebbing away. In the same month, modern and contemporary works from the collection of the late financier Gerald Fineberg sold well below pre-auction estimates.”
The value of ultra contemporary or ‘red-chip’ art contracted the most in 2023.
“Works by a growing group of artists born after 1980 have been heavily promoted by mega galleries and auction houses in recent years. With freshly painted works in excess of £100,000 almost doubling in 2022, it was little surprise that this sector was one of the biggest casualties last year. There is a risk there are now simply too many fresh paint artists with none really standing out.”
In the jewellery market, Mr Duthy noted that demand was strongest for coloured gemstones of exceptional quality, iconic signed period jewels, single-owner collections, and items with historic provenance in 2023. In the watches market, Mr Duthy said collectors chased the most iconic and rare timepieces.
“A Rolex John Player Special broke the model record when it sold for £2 million at Sotheby’s in May, double the price for a similar example sold at Phillips in 2021,” he said.
Although whisky was the worst-performing collectable in 2023, it has delivered the highest return on investment among the 10 items tracked by the index over the past decade, up 280 percent. Andy Simpson of Simpson Reserved, said 2023 was a challenging year but the best of the best bottles gained 20 percent in value. “In my opinion some bottles that lost significant value in 2023 will return through the next two years as they are simply so scarce and, right now at least, so undervalued,” Mr Simpson said.
Classic car expert Dietrich Hatlapa said the 6 percent fall in collectable vehicle values in 2023 followed a 22 percent surge in 2022. “The strong performance of other investment classes such as equities may have dampened collectors’ appetites – it’s a very small market so it only takes a minor change in portfolio allocations to have an effect, and there has also probably been a degree of profit taking. However, we have seen some marques like BMW (up 9 percent in value) and Lamborghini (up 18 percent), which appeal to a younger breed of collector, buck the trend in 2023.”
Mr Duthy said a dip in the share price of the top luxury handbag brands last Autumn appeared to spook investors. “Last autumn it was possible to pick up an Hermès white Niloticus Himalaya Birkin in good condition for under £50,000. The recent slide reflects a general correction at the upper end that’s been underway for some time rather than changing attitudes to the harvesting of exotic skins.”
According to Knight Frank’s Attitudes Survey, the top five investments of passion among Australian UHNWIs are classic cars, art and wine. Fine wine values gained just 1 percent in 2023 as the market continued its correction, said Nick Martin of Wine Owners. “It’s been a hell of a long run, so I’m not that surprised. Some wines from very small producers that had enjoyed the most exuberant growth have seen the biggest drops. It had got a bit silly, £50 bottles had shot up to £200 or £300.”
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Aston Martin builds all of its cars with a peak blend of performance and luxury. Still, their six-figure creations can lean more aggressively into one side or the other of that simple recipe.
For example, the DBD707 SUV hides a 4-litre V8 engine capable of 697 horsepower, but its overall size and endless creature comforts nuzzle a little closer to luxury’s embrace. The small-batch Valour muscles up on the performance scale with its prized manual transmission and 5.2-litre, 705 horsepower V12 power plant. Meanwhile, the recently redesigned DB12 is the company’s best attempt at splitting the performance-luxury gambit right down the middle.
Amid all of those supercar machinations, the Aston Martin Vantage sneaks away to play as the most performance-centric car coming out of the Gaydon, England, factory. Redesigned for 2025, the US$191,000 coupe reasserts itself as the most dedicated “driver’s car” in a very driver-friendly line. Should this be in pounds first?
During a road drive and speed testing event at Spain’s Circuito Monteblanco about an hour outside of Seville, the new Vantage proved itself as Aston Martin’s most accessible track-day companion.
A first look at the latest addition to its very elite Warwickshire family pulls the eyes right to the newly extended rear wells that jut out around 21-inch, forged alloy wheels. While widening the car’s haunches, the wheel positioning reduces unsparing weight and gives the new Vantage a much more athletic pose.
Beyond that muscular base, the Vantage continues the modern Aston Martin styling tradition of riding the razor’s edge between aggression and sophistication. While the car’s Italian and Swedish rivals opt for prominent fins and big scoops, Aston’s designers keep the lines low, wide, and balanced from the signature highlighted grille to the understated aerodynamic spoiler.
In the performance specs department, the Vantage now packs an AMG-built, 4.0-litre, V8 twin turbo, front-mid mounted engine, capable of 656 horsepower, and a top speed of 202 miles per house and a 0 to 60 mph time of 3.4 seconds.
According to James Owen, Aston Martin’s senior manager of Vehicle Engineering, if the DB12 is the automaker’s distinguished overachiever, the Vantage is its less responsible, but equally attractive pugnacious sibling.
“The DB12 is a sports tourer and is positioned in the market as a GT,” Owen says. “It’s important for us to differentiate between Vantage and the DB12—to make sure that difference is clear for buyers and enthusiasts”
Owen describes the larger, pricier DB12 (starting MSRP of US$245,000) as more refined, while he considers the 2025 Vantage as playful and passionate. He even uses the word “brutish,” if such a term can be used for a technology-stuffed, six-figure sports car.
“The word that we keep hearing when talking about the Vantage is ‘fun,’” Owen adds. “That’s what we wanted to hear. We wanted to create a car that pulls at the heartstrings because it’s so enjoyable to drive. But, we wanted it to have a challenging character to it.”
Previous versions of the Vantage fit that punkier image. While always built for speed and powerful acceleration, the last couple editions of the Vantage were a little more harsh. The steering seemed more aggressive—demanding more input from the driver. The suspension felt tighter, deliberately transmitting more of the road’s surfaces and imperfections into the driver’s backside. If any current car in the Aston Martin line is a direct descendant of the automaker’s racing pedigree at Le Mans or in F1, it’s the Vantage.
Still, amid all this talk of driving fun and racing performance, Owen is quick to remind drivers that the Vantage is still an Aston Martin— steeped in the company’s signature identity of sophistication as the grownup’s more dignified supercar.
“The Vantage also has that added feature in its wheelhouse,” Owen explains. “Yes, it will respond to a driver pushing it in a racing scenario, but—with the technology we built into the car to stabilise the body at its most comfortable driver mode settings – the Vantage is still a very pleasant place to be.”
In keeping with such pleasantness, the interior of 2025 Vantage bears no resemblance to any race car. Handmade and stitched Haircell Leather stretches in all directions in any colour the buyer prefers. The Sports Plus Seats are 8-way adjustable with heat or cooling on demand. The complete infotainment suite featuring the official Aston Martin Audio system from Bowers & Wilkins is a step up from the previous Vantage (and the current DB12).
Once the internal comforts and engineering feats come together, the experience behind the wheel is a sensual union of car and operator. Acceleration is smooth, yet immediate. The cornering is focused and nimble, and its rear-wheel drive allows for just enough play for the occasional drift at speed in turns.
A key piece of Aston Martin technology makes the Vantage’s elite performance potential accessible to more drivers. The ESP System (Electronic Stability Programme) debuted in the DB12, and the Vantage adopts the tech to its driver mode system. ESP takes information from multiple sensors around the vehicle, feeding the accelerometer data into a computerised concept of the car’s driving conditions and the ability of the operator.
Resulting algorithms react to those conditions, road surface issues, available grip, etc., tightening up the vehicle where necessary to aid the driver and offer as much feel and performance as the given operator can manage.
In its completed package, the 2025 Vantage is aimed at a specific buyer demographic—the driving enthusiast who puts thrills ahead of all-out creature comforts.
“For each project at Aston Martin, we have a customer profile in mind,” Owen says. “They have defined interests that highlight their demographic. For the Vantage, we consider a buyer who is perhaps new to the brand and looking into the ‘entry level’ Aston Martin. That’s a buyer who isn’t concerned with having a backseat or the DB nameplate. He or she thinks performance first and foremost.”
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