The company KnightFrank released a report on their Blog – see below in the sources section, about the profitability of various different so called luxury assets. I would call the alternative investments. A comparison over a time frame of 12months, 5years and 10 years was done between the following asset classes: Antique furniture, Art, Chinese ceramics, coloured diamonds, stamps, jewellery, watches, coins, and cars.
The 12months comparisons show that only coins, wine, and cars were able to perform above of a 5% return on investment. In the longer timeframe of 5 years, all asset classes besides of antique furniture have a positive return on investment in the range of 12 to 161%. It seems that antique furniture is losing its status as an investment vehicle or popular part of collections, as also in a 10year time frame a negative return on investment can be seen in the mentioned report. In the longest time-frame of 10 years, Chinese ceramics and watches show an ROI between 37% and 65%. Whereas coloured diamonds, stamps, jewellery and coins produce returns between 129% and 195%. The high-runners on this long-term scale are definitely art with an ROI of 206%, wine with an ROI of 245% and car investments with an ROI of exceptionally 467%.
From my experience and also from the history of my posts you can see that I also focus a lot on coin investments and also was able to achieve extensive profits with this asset class. For the future, I can definitely take this as a lesson or chance to widen up my horizon of possible alternative investments.
I will definitely use the opportunity and go into more details of all mentioned possible alternative investments and their chances and risks.