China, Socialism & Consumer Behavior: Super-rich in growing passion for investment

Demand for art, watches, rare wines, vintage cars and other offbeat investments expanded in 2010 as the world’s super-rich rebounded from the financial crisis, according the latest World Wealth Report.

“The value of many categories of ‘investments of passion’ rose and HNWIs (high net-worth individuals) made acquisitions for the aesthetic and emotional appeal and their potential to return value,” Capgemini and Merrill Lynch said in their World Wealth Report published recently.

Growing wealth in emerging economies, especially in Asia – which surpassed Europe in millionaires and wealth last year – helped spur a revival in markets for these aptly named investments, the authors of the report said.

Luxury collectibles such as fancy cars, boats and jets accounted for almost a third of these investments in 2010. Chinese demand for cars made by Mercedes-Benz and Ferrari jumped last year.

“Newly wealthy Chinese buyers are widely reported to be keen bidders and buyers at galleries and auction houses, especially to acquire the fast-diminishing supply of works from native artists,” the authors of the report said.

Meanwhile, demand for diamonds as well as gold jewelry and coins soared.

“Record prices for diamonds at international auctions in 2010 exemplified the growing trend among the world’s HNWIs to see large diamonds as a safe and high-growth investment alternative,” the report said

via Super-rich in growing passion for investment — Shanghai Daily | English Window to China New.

Itamar Medeiros

Originally from Brazil, Itamar Medeiros currently lives in Germany, where he works as Lead Product Design Strategist at SAP and promotes User Experience Design as visiting lecturer at Köln International School of Design. Working in the Information Technology industry since 1998, Itamar Medeiros has helped truly global companies in several countries (Argentina, Brazil, China, Germany, Hong Kong, India, Mexico, The Netherlands, Poland, United Arab Emirates, United States) create great user experience through advocating Design and Innovation principles. During his 7 years in China, he championed the User Experience Design discipline as User Experience Manager at Autodesk and Local Coordinator of the Interaction Design Association (IxDA) in Shanghai

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