The ultra-rich are piling into Rolexes, rubies and Klimts as inflation hedges—but the real return may be about more than money
Source: Fortune ·
Nearly two-thirds of family offices now hold assets like art, watches and fine jewelry, a new BNY survey finds. The evidence on whether they pay off is mixed. Their value as a signal of wealth is not.
From the source
BNY Wealth recently surveyed investment decision-makers at 290 single-family offices—the private firms that manage the fortunes of families with at least $250 million in investable assets. Nearly half of respondents oversee more than $1 billion. Notably, nearly two-thirds of the family offices surveyed held assets uncorrelated to their broader investment programs, almost double last year’s share. More offices reported investments in luxury assets, from watches, fine jewelry, art and spirits to sports teams and music rights. The report suggests the growing popularity of luxury assets may reflect their potential as inflation hedges. Inflation, along with potential central bank missteps, ranked as the top risk family offices see over the next five years. “Certain luxury assets, such as sports and media rights, that we are increasingly seeing in UHNW [ultra-high-net-worth] portfolios can offer protection against inflation through pricing flexibility and recurring cash flows,” said Chuck…