They say follow your passion, and for some when it comes to investing that is proving to be lucrative advice.

For centuries, passion investing has been as much about enjoying the asset you own as it has been about searching for returns, but when it comes to some luxury investment types, passion has made for a pretty penny.

According to Knight Frank’s 2022 Luxury Investment Index, which tracks the value of the most popular luxury goods, fine wines and collectible watches saw the highest growth out of all luxury investments in 2021 – with both gaining 16%. The index also grew 9% in total in 2021, its strongest overall performance since 2018.

But passion investing is diversifying as much as it is proving shrewd.

The face of wealth is changing, and younger consumers have the ability to follow their passions too. A pair of Michael Jordan’s iconic game-worn Nike trainers recently fetched $1.5m, whilst first-edition Pokémon cards have been selling for millions of dollars.

We should note, as with any investment the value of these unique luxury items can rise and fall. They’re niche investments often with limited precedent to judge risk by.

Passion investing is first and foremost about owning what you love, anything else is a bonus, and as consumer habits continue to evolve each year, so will the types of assets people will want their hands on.

You can read more about Knight Frank’s Luxury Investment Index by following the link below.

https://www.knightfrank.com/wealthreport/category/property-investment/luxury-investment/