Home Economy Wealthy Lured To Buy Passion Investments

Wealthy Lured To Buy Passion Investments

The golden touch of Britain’s latest Euromillions £107 million lottery winner instantly projected him in to the rich list.

The fourth largest UK lottery win ever sent car mechanic Neil Trotter, 41, into 745th place in the Sunday Times Rich List – above pop stars George Michael and Robbie Williams.

He scooped the jackpot after joking with his father-in-law and workmates that he would be a multimillionaire the next day.

Now, he plans to spend his cash on following his passion of motor racing – he came sixth in last year’s BMW Compact Cup for newcomer drivers.

Trotter can follow his sport without touching his fortune as £107 million a year generates more than £3 million in interest.

Antiques are a poor investment

Spending money wisely does not seem to be a trend for the super-rich.

A new study shows that many of the world’s wealthiest people disregard the business acumen that built their fortunes once they have disposable millions to spend.

Some spend on a lifestyle of excess, with never-ending holidays, fleets of luxury cars, helicopters and even personal jets at their disposal.

But for some reason, investing in antiques is a favourite hobby.

However, the study, by market research firm Wealth-X reveals that antiques are a poor investment with values lagging at levels last seen in the 1990s.

The statistic comes from the Antique Furniture Price Index, which hit a peak of 3575 in 2002, but now languishes at 2391.

Simon Smiles, global chief investment head for the ultra-high net worth segment at bankers UBS, considers antiques a poor investment.

Odd way to spend money

“Antiques are illiquid, emotional assets and significant, specialist knowledge is required to assess their potential financial risks and rewards,” he said.

“Most sales are made privately and the antiques industry is barely regulated.”

Nevertheless, passion investments like art and antiques, yachts, collectible cars and fine wine led to multimillionaires forking out around £48 million on their hobbies last year.

Wealth-X reckons billionaires own almost £20 billion of antiques, fashion, jewellery and collectible cars – an expense of £8.5 billion each on average.

The trap with passion investments is they mean something to the buyer, but the price is stripped right back by dealers who have no emotional attachment, but the knowledge to hike the price for another investor to maintain high profit margins.

“It seems odd to spend money this way for people who should be more financially astute, but perhaps they are just bored or like nice things around them regardless of the price,” said a spokesman.

Saeed Maleki
Saeed Maleki
As the former co-founder of "Yazd Zamaneh" publication (زمانه یزد), Maleki is one of the most experienced reporter working for Pars Herald. Saeed started Zamaneh in cooperation with two local publications on 2007. Two years later he closed his news corporation due to post-election protests in which he was accused of agitating people to demonstrate against Iranian government. On the same year he joined Pars Herald Group as the Economy writer. He is currently studying in Yazd's Payam Nour University perusing his bachelor degree. City: Yazd Phone Number: +989127906398 Email: Saeed {at} ParsHerald.com Name in Persian: سعید ملکی

Stay Connected

1,502FansLike
505FollowersFollow

Must Read

How Safe Is A Visit To The Caribbean?

Expats, tourists and business people visiting the Caribbean may well worry about their safety after a seemingly endless series of warnings and alerts over...

How Safe Is A Visit To The Caribbean?

Expats, tourists and business people visiting the Caribbean may well worry about their safety after a seemingly endless series of warnings and alerts over...

Black Friday Shopping Secrets Revealed

Just because stuff has a Black Friday price tag promising huge discounts doesn’t make what you are buying a great deal. Prices shift up and...

Periodic Table Is Elementary For Scientists

Scientists are in their element as they celebrate the 150thanniversary of the periodic table. The table has tortured physics and chemistry students trying to learn...

Related News

How To Claim SEIS Tax Reliefs

Investors of the Seed Enterprise Investment Scheme (SEIS) investors should begin organizing their papers in order to claim the scheme's tax reliefs. The tax year...

New Species of River Dolphin Found

Scientists from Brazil have announced the discovery of a new species of dolphin. As discoveries go, identifying a new species of any animal is welcomed...

Standardised Packaging for Cigarettes by 2015

Cigarette smoking has been proven to cause a number of diseases, the most fatal being cancer. Campaigns have started time and time again to have...

Who Really Profits From Rags To Riches Courses?

Rags to riches courses may change their topic but all have the same theme – a charismatic speaker willing to spill the secrets of...

Beware of QROPS Opinions

A Qualifying Recognised Overseas Pension Scheme (QROPS) is a pension scheme designed for expatriates and usually advised on by qualified advisers in the jurisdiction...

LEAVE A REPLY

Please enter your comment!
Please enter your name here