The world’s wealthiest families are increasingly putting their money into luxury collectibles, from Rolex watches and gemstone jewelry to works of art. For them, these assets offer not only a way to protect wealth against inflation and market turmoil, but also an opportunity to signal status. However, experts warn that not every expensive item makes a profitable investment, Fortune reports.
According to a BNY Wealth study covering 290 family offices managing the wealth of families with at least $250 million in investable assets, nearly two-thirds of respondents hold assets that are not directly tied to the rest of their investment portfolios. That is almost twice the share reported a year earlier. Many have increased their holdings of luxury assets, including watches, jewelry, art, alcoholic beverages, sports teams, and music rights.
Nearly half of those surveyed manage more than $1 billion in wealth. They identified inflation and potential central bank policy mistakes as the biggest risks over the next five years.
According to Chuck Long, head of global markets and family offices at BNY Wealth, some assets, such as sports and media rights, can help protect wealth against inflation because they allow owners to raise prices and generate recurring income.
However, the most notable increase in investment has not been in assets that produce a steady stream of revenue, but in tangible valuables such as watches, jewelry, paintings, and collectible spirits. In this respect, buying a Patek Philippe watch resembles purchasing gold: both are viewed as ways to preserve wealth during periods of economic uncertainty.
Performance across the luxury collectibles market has been mixed, although some categories have proved relatively resilient.
According to Knight Frank, its Luxury Investment Index, which tracks ten categories of collectible assets, fell by just 0.4% in 2025.
Sales of art at major auction houses rose 11% over the year. One of the biggest highlights was the sale of Gustav Klimt’s Portrait of Elisabeth Lederer at Sotheby’s in November 2025 for $236.4 million.
On the secondary watch market, prices rose by 5.1%. Patek Philippe watches gained 12.1%, while Rolex prices increased by 4.6%.
Collectible wine, by contrast, had a more difficult year. Prices fell by 2.5% in 2025 amid US tariffs and weakening demand, leaving them nearly a quarter below their 2022 peak.
In a world where technology can produce an ever-growing range of goods and content, individual taste may become a defining marker of distinction. That was the point made by Y Combinator co-founder Paul Graham, who wrote in February 2026: “In the age of AI, taste will become even more important. When anyone can create anything, what matters most is what you choose to create.”
A similar principle applies when ultrawealthy individuals buy luxury collectibles: what matters is not simply how much an item costs, but which particular piece they choose.
Research suggests that an object’s value depends less on its belonging to the luxury category than on its specific appeal to buyers. This is especially evident in the art market.
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