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Comparing Luxury Investment Around the World

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Comparing Luxury Investment Around the World

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Comparing Luxury Investment Around the World

Do you enjoy the finer things in life? For many of the world’s wealthy individuals, acquiring luxury goods such as art, fine wine, and watches is a passion.

Unlike traditional investments in financial assets, luxury goods can be difficult to value if one does not have an appreciation for their form. A rare painting, for example, does not generate cash flows, meaning its value is truly in the eye of the beholder.

To gain some insight into the market for luxury goods, this infographic takes data from Knight Frank’s 2021 Wealth Report to compare the preferences of nine global regions.

Global Tastes in Luxury Goods

To rank the most popular luxury investments in 2020, Knight Frank surveyed over 600 private bankers, wealth advisors, and family offices. The following table summarizes their findings, as well as each category’s growth according to the Knight Frank Luxury Investment Index.

Global Average RankingCategory10-year growth in asset values (%)
1Art71%
2Classic cars193%
3Watches89%
4Wine127%
5Jewelry67%
6Rare whiskey478%
7Furniture22%
8Colored diamonds39%
9Coins72%
10Handbags108%

Art was unmistakably the top category for 2020, ranking first in every geographic region except Africa and Asia, where it placed second instead. The global market for artwork was estimated to be worth $64 billion in 2019, and is often facilitated through auction houses such as Sotheby’s.

In terms of asset appreciation, rare whiskeys have climbed the most in value over the past 10 years. Connoisseurs of this spirit will be familiar with distilleries like The Macallan, whose rare bottles can sell for more than a million dollars.

Comparing Luxury Investment Between North America and Asia

Below, we’ve compared the rankings of Asia and North America to get a better idea of how preferences can vary.

The biggest differences here are watches, which ranked first in Asia but fourth in North America, and classic cars, which ranked second in North America but fifth in Asia. The remaining eight categories took similar spots across the two regions.

RankAsia PopularityNorth America Popularity
1WatchesArt
2ArtClassic cars
3JewelryWine
4WineWatches
5Classic carsJewelry
6Rare whiskeyRare whiskey
7HandbagsFurniture
8FurnitureHandbags
9Colored diamondsCoins (tied for 8th place)
10CoinsColored diamonds

Asia’s stronger preference for watches was likely driven by Chinese consumers, who are now the biggest buyers of luxury watches globally. Demand throughout the COVID-19 pandemic proved resilient, with exports of Swiss watches to China increasing by 17.1% between January and November 2020.

Classic cars, on the other hand, may be more popular in North America due to the region’s longer automotive history. Two of America’s most iconic automakers, Ford and General Motors, have both been around for over a century!

The Biggest Sales of 2020

Here were some of the most extravagant and noteworthy luxury sales from 2020.

Art

Francis Bacon’s 1981 Triptych Inspired by the Oresteia of Aeschylus was sold by Sotheby’s for $84.6 million in June 2020. A triptych is an artwork that is divided into three sections but displayed as a single piece.

Other paintings by Francis Bacon have sold for even larger amounts. In 2013, Three Studies of Lucian Freud was sold by Christie’s auction house for $142 million.

Classic Cars

A 1932 Bugatti Type 55 Super Sport Roadster sold for $7.1 million in March 2020, making it one of the biggest classic car sales of the year.

Founded in 1909, Bugatti has produced some of the world’s most sought-after cars. The French brand was acquired by the Volkswagen Group in 1998, and since then, has released numerous special edition cars with price tags reaching well into the millions.

Handbags

An Hermès Himalaya Niloticus Crocodile Retourné Kelly 25 sold for $437,330 in November 2020, becoming the most expensive handbag ever sold at an auction. Founded in 1837, Hermès is commonly regarded as one of the world’s most prestigious makers of handbags.

COVID-19 Dampens Luxury Investment

When compared to 2019, total sales for Sotheby’s declined 16% in 2020, while Christie’s, another leading auction house, reported a 25% decline. Despite these decreases, executives remain optimistic.

“The art and luxury markets have proven to be incredibly resilient, and demand for quality across categories is unabated.”
– Charles Stewart, CEO, Sotheby’s

The industry has been largely successful in transitioning to online operations, with Sotheby’s reporting that 70% of its auctions in 2020 were held online, up from 30% in the previous year.

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Science

Explainer: The Basics of DNA and Genetic Systems

All living things have a genetic system made up of DNA. This graphic explores the basics of DNA composition and structure.

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Explainer: The Basics of DNA and Genetic Systems

While there is great diversity among living things, we all have one thing in common—we all rely on a genetic system made up of DNA and/or RNA.

But how do genetic systems work, and to what extent do they vary across species?

This graphic by Anne-Lise Paris explores the basics of DNA and genetic systems, including how they’re structured, and how they differ across species.

Composition of Genetic Systems: DNA and RNA

A genetic system is essentially a set of instructions that dictate our genetic makeup—what we look like and how we interact with our environment.

This set of instructions is stored in nucleic acids, the two main types being deoxyribonucleic acid (DNA) and ribonucleic acid (RNA).

While most living things rely on a mix of DNA and RNA for cellular reproduction, some viruses just use RNA to store their genetic information and replicate faster.

DNA is made up of four molecules, known as nucleotides: Adenine (A), Thymine (T), Cytosine ( C), and Guanine (G). These nucleotides are grouped in sets of two, which are called base pairs.

Size of Genomes Across Different Organisms

Human DNA is made up of approximately 3.2 billion base pairs that are tightly wound up and stored in our cells. If you were to unwind and measure the DNA stored in a single human cell, it would be about 2 meters (6.5 feet) long!

This lengthy DNA is stored in pairs of chromosomes. A full collection of chromosomes, or an entire set of genetic information, is referred to as a genome.

Genomes vary in size, depending on the organism. Here is a look at 24 different species and the size of their genomes, from animals and plants to bacteria and viruses:

OrganismKingdomSize of genomes (number of base pairs)
Poplar treePlant500,000,000
HumanAnimal3,200,000,000
ChimpanzeeAnimal3,300,000,000
Marbled lungfishAnimal130,000,000,000
DogAnimal2,400,000,000
WheatPlant16,800,000,000
PufferfishAnimal400,000,000
Canopy plantPlant150,000,000,000
Mouse-ear cressPlant140,000,000
CornPlant2,300,000,000
MouseAnimal2,800,000,000
MossPlant510,000,000
Fruit FlyAnimal140,000,000
C. ruddiiBacteria160,000
S. pombeFungi13,000,000
S. cerevisiaeFungi12,000,000
S. cellulosumBacteria13,000,000
H. pyloriBacteria1,700,000
E. coliBacteria4,600,000
Panadoravirus s.Virus2,800,000
HIV-1Virus9,700
Influenza AVirus14,000
BacteriophageVirus49,000
Hepatitis D virusVirus1,700

The Marbled Lungfish has the largest known animal genome. Its genome is made up of 130 billion base pairs, which is about 126.8 billion more than the average human genome.

Comparatively, small viruses and bacteria have fewer base pairs. The Hepatitis D virus has only 1,700 base pairs, while E. coli bacteria has 4.6 million. Interestingly, research has not found a link between the size of a species’ genome and the organism’s size or complexity.

In fact, there are still a ton of unanswered questions in the field of genome research. Why do some species have small genomes? Why do some have a ton of redundant DNA? These are still questions being investigated by scientists today.

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Politics

Mapped: Which Countries Still Have a Monarchy?

Beyond the 15 nations under the British monarchy, 28 other countries still have a ruling monarch. Here’s a look at the world’s monarchies.

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monarchies

Mapped: Which Countries Still Have a Monarchy?

In the wake of Queen Elizabeth II’s death, the question of monarchy is brought sharply into focus.

However, a surprising number of countries have ruling monarchs, and in this visual we break down the kinds of royal leadership across the 43 countries that still have them.

Types of Monarchies

A monarch in the simplest sense is a country’s king, queen, emir, or sultan, and so on. But before diving in, it’s important to break down the distinctions between the types of monarchies that exist today. Generally, there are four kinds:

① Constitutional Monarchy

The monarch divides power with a constitutionally founded government. In this situation, the monarch, while having ceremonial duties and certain responsibilities, does not have any political power. For example, the UK’s monarch must sign all laws to make them official, but has no power to change or reject new laws.

Here are some examples of countries with constitutional monarchies:

🇯🇵  Japan
🇬🇧  United Kingdom
🇩🇰  Denmark

② Absolute Monarchy

The monarch has full and absolute political power. They can amend, reject, or create laws, represent the country’s interests abroad, appoint political leaders, and so on.

Here are some examples of countries with absolute monarchies:

🇸🇿  Eswatini
🇸🇦  Saudi Arabia
🇻🇦  Vatican City

③ Federal Monarchy

The monarch serves an overall figurehead of the federation of states which have their own governments, or even monarchies, ruling them.

Here are some examples of countries with federal monarchies:

🇦🇪  UAE
🇲🇾  Malaysia

Malaysia is a unique form of federal monarchy. Every five years, each state’s royal leaders choose amongst themselves who will be the monarch, or the Yang di-Pertuan Agong, of Malaysia and the respective states. Furthermore, the monarchy is also constitutional, allowing a democratically elected body to govern.

④ Mixed Monarchy

This is a situation wherein an absolute monarch may divide powers in distinct ways specific to the country.

Here are some examples of countries with mixed monarchies:

🇯🇴  Jordan
🇱🇮  Liechtenstein
🇲🇦  Morocco

Interestingly, Liechtenstein is the only European monarchy that still practises strict agnatic primogeniture. Under agnatic primogeniture, the degree of kinship is determined by tracing descent from the nearest common ancestor through male ancestors.

Kings, Queens, Emperors, and Sultans Around the Globe

Now let’s break down the different monarchies country by country:

CountryType of MonarchyTitle of Head of StateMonarchTitle of Head of Government
🇦🇩 AndorraConstitutionalCo-PrincesJoan-Enric Vives, Emmanuel MacronPrime Minister
🇦🇬 Antigua and BarbudaConstitutionalKingCharles IIIPrime Minister
🇦🇺 AustraliaConstitutionalKingCharles IIIPrime Minister
🇧🇭 BahrainMixedKingHamad bin Isa Al KhalifaPrime Minister
🇧🇪 BelgiumConstitutionalKing PhilippePrime Minister
🇧🇿 BelizeConstitutionalKingCharles IIIPrime Minister
🇧🇹 BhutanConstitutionalKingJigme Khesar Namgyel WangchuckPrime Minister
🇧🇳 Brunei DarussalamAbsoluteSultanHassanal BolkiahSultan
🇰🇭 CambodiaConstitutionalKingNorodom SihamoniPrime Minister
🇨🇦 CanadaConstitutionalKingCharles IIIPrime Minister
🇩🇰 DenmarkConstitutionalQueenMargrethe IIPrime Minister
🇸🇿 EswatiniAbsoluteKingMswati IIIPrime Minister
🇬🇩 GrenadaConstitutionalKingCharles IIIPrime Minister
🇯🇲 JamaicaConstitutionalKingCharles IIIPrime Minister
🇯🇵 JapanConstitutionalEmperorNaruhitoPrime Minister
🇯🇴 JordanMixedKingAbdullah IIPrime Minister
🇰🇼 KuwaitMixedEmirNawaf Al-Ahmad Al-Jaber Al-SabahPrime Minister
🇱🇸 LesothoConstitutionalKingLetsie IIIPrime Minister
🇱🇮 Liechtenstein MixedSovereign PrinceHans-Adam IIPrime Minister
🇱🇺 LuxembourgConstitutionalGrand DukeHenriPrime Minister
🇲🇾 MalaysiaConstitutional & FederalYang di-Pertuan AgongAbdullahPrime Minister
🇲🇨 MonacoMixedSovereign PrinceAlbert IIMinister of State
🇲🇦 MoroccoMixedKingMohammed VIPrime Minister
🇳🇱 NetherlandsConstitutionalKingWillem-AlexanderPrime Minister
🇳🇿 New ZealandConstitutionalKingCharles IIIPrime Minister
🇳🇴 NorwayConstitutionalKingHarald VPrime Minister
🇴🇲 OmanAbsoluteSultanHaitham bin TarikSultan
🇵🇬 Papua New GuineaConstitutionalKingCharles IIIPrime Minister
🇶🇦 QatarMixedEmirTamim bin Hamad Al ThaniPrime Minister
🇰🇳 Saint Kitts and NevisConstitutionalKingCharles IIIPrime Minister
🇱🇨 Saint LuciaConstitutionalKingCharles IIIPrime Minister
🇻🇨 Saint Vincent and the GrenadinesConstitutionalKingCharles IIIPrime Minister
🇸🇦 Saudi ArabiaAbsoluteKingSalmanPrime Minister
🇸🇧 Solomon IslandsConstitutionalKingCharles IIIPrime Minister
🇪🇸 SpainConstitutionalKingFelipe VIPresident of the Government
🇸🇪 SwedenConstitutionalKingCarl XVI GustafPrime Minister
🇹🇭 ThailandConstitutionalKingRama XPrime Minister
🇧🇸 The BahamasConstitutionalKingCharles IIIPrime Minister
🇹🇴 TongaConstitutionalKingTupou VIPrime Minister
🇹🇻 TuvaluConstitutionalKingCharles IIIPrime Minister
🇦🇪 UAEFederalPresidentMohamed bin Zayed Al NahyanPrime Minister
🇬🇧 UKConstitutionalKingCharles IIIPrime Minister
🇻🇦 Vatican CityAbsolutePopeFrancisPresident of the Pontifical Commission

Constitutional monarchies are undoubtedly the most popular form of royal leadership in the modern era⁠, making up close to 70% of all monarchies. This situation allows for democratically elected governments to rule the country, while the monarch performs ceremonial duties.

Most monarchs are hereditary, inheriting their position by luck of their birth, but interestingly, French president, Emmanuel Macron, technically serves as a Co-Prince of Andorra.

Another unique case is the Vatican’s Pope Francis, who has absolute power in the small independent city⁠—he gained his role thanks to an election process known as a papal conclave.

The Role of Monarchies

One of the most notable and famous ruling monarchies is the United Kingdom’s House of Windsor⁠—also known as Queen Elizabeth II’s family. King Charles III has now ascended to the country’s throne, making him head of state in 15 nations total, including Canada, Australia, and New Zealand.

Many see the benefit in having a stable and consistent form of tradition and decorum at the country’s head of state.

“The Crown is an integral part of the institution of Parliament. The Queen [now King] plays a constitutional role in opening and dissolving Parliament and approving Bills before they become law.” – British Parliament

Japan’s royal family has been a prime example of stability, having reigned in the country for more than 2,600 years under the same hereditary line.

Critiques and the Future of Monarchy

Some claim, however, that there is no function of monarchy in the modern day, and complaints of monarchies’ immense wealth and power are rampant.

For example, according to the Dutch government, King Willem-Alexander’s budget for 2022, funded by the state and thus, taxpayers, comes out to more than €48 million.

Beyond tax dollars, with absolute monarchies there is typically a lack of political freedoms and certain rights. Saudi Arabia, for example, has no national elections. Rather its king, Salman bin Abdulaziz Al Saud, stays in power for life, appoints the cabinet himself, and passes laws by royal decree.

The death of Queen Elizabeth, though, may bring about change though for many of the world’s royally-governed. Since Barbados’ removal of her as head of state in 2021, six other Caribbean nations have expressed the desire to do the same, namely:

🇧🇿  Belize
🇧🇸  The Bahamas
🇯🇲  Jamaica
🇬🇩  Grenada
🇦🇬  Antigua and Barbuda
🇰🇳  St. Kitts and Nevis

The future of monarchy in the 21st century is certainly not a guarantee.

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