We have been reporting to you how the luxury market is slowly and steadily recovering from the economic downturn. Supporting and reiterating our report is the latest Merrill Lynch-Capgemini world wealth report that says the spending on luxury goods has shown an increase and this increase is expected to continue throughout 2010. Although the spending on luxury goods is not as high as it was in 2007, spending on so-called “passion investments” increased during the second half last year and is expected to continue to rise, according to the report. The year 2009 witnessed millionaires again indulging in their passions and spending on cars, yachts, and high-end jewelry and artifacts. Millionaires in the emerging markets showed an increased demand for luxury cars.
Automakers like BMW, Audi, and VW reported a sharp increase in sales in China. The U.S. yacht sellers, too, have reported a 30 percent increase in sales compared with a year earlier, according to the report.
Too, auctions reported an increase in sales and demands for high-end items like rare coins, jewelry, and memorabilia. The fine art market is yet to see an increase in demand; however, China was the only market where fine art demand showed a sharp increase of 25% in auction revenues.
Wealthy investors are also holding an increasing portion of their passion investments as jewelry, gems, and watches.
And as we come across more record-breaking sales and auctions, the belief in this report is only strengthened.