You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App

NEW SENS search and JSE share prices

More about the app

Africa’s taste for luxury goods grows

Popularity of classic stamps rises.

Well-heeled individuals are known to have a fine taste for luxury goods and this year won’t be any different.

Investment into passions such as luxury cars, diamonds, art and more by ultra-high net worth individuals (UHNWI) with at least $30 million (R371 million) in assets will continue to rise.

According to Knight Frank’s 2015 Wealth Report about 30% of global UHNWI will be spending money on investments of passion this year.

The African continent has joined the global ranks of destinations where populations have a strong taste for luxury goods. Almost 40% of African UHNWI are said to prioritise the purchase of luxury goods.

The report surveys 500 private bankers and global wealth advisers who represent over 10 000 UHNWI with a combined wealth of $1.7 trillion (R21 trillion).

Editor of the Wealth Report Andrew Shirley says global UHNWI prefer investments of passion such as artworks, because they believe these goods have the potential to grow in their value over time.

While in Africa, UHNWI have a slightly different focus. Shirley says that in Africa, stamps are growing in popularity as a luxury investment vehicle.

These are not stamps sourced from the local post office, but classic stamps which fetch serious money. For example, the stamps an African investor would be interested in include the British Guiana 1856 one-cent black-on-magenta stamp which set a world record when it was auctioned for $9.4 million (R116 million) by Sotheby’s New York in June last year.

Knight Frank says globally UHNWI rose by almost 5 200 or 3% in 2014. The African continent has the highest potential for growth than any region at the moment, with UHNWI expected to increase by 59% in the region than 34% globally.

The rise is attributed to the globalisation of wealth and government restrictions on creating wealth which has forced cash-flush individuals to search for opportunities in other destinations.

AUTHOR PROFILE

VIDEOS

COMMENTS   0

Comments on this article are closed.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Podcasts

INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: