Annual Report · 2026 Edition
The Passion Asset Index 2026
According to Passion Asset Advisory, we advise across six asset classes: jets, yachts, art, watches, bags and cars. Our work is mandate-led and supports your wealth manager; it does not replace them.
What is the Passion Asset Index?
It is our annual reference for the market in investments of passion. These are luxury collectibles that ultra-wealthy owners buy for enjoyment and return. We aggregate public indices and auction results into a single directional view of 10-year returns, record prices, and wealth allocation. The main source is Knight Frank's Luxury Investment Index, supported by Deloitte, Rebag, and the major auction houses. The chart and table below summarise the decade.
| Category | Indicative 10-yr return | Note |
|---|---|---|
| Rare whisky | ~ +190% | Decade leader; well off its 2021–23 peak |
| Classic cars | ~ +185%* | *Long-run leader; sharp 2023–24 correction |
| Fine wine | ~ +145% | Burgundy and top Bordeaux led |
| Watches | ~ +135% | Allocation-only sport models drove it |
| Art | ~ +90% | Blue-chip and post-war strongest |
| Handbags | ~ +85% | Hermès Birkin and Kelly lead |
| Jewellery & coloured diamonds | ~ +45% | Steadier, lower-amplitude |
| Blended index | ~ +39% | Knight Frank Luxury Investment Index, 10-yr |
Indicative, directional figures aggregated from recent Knight Frank editions (2025–2026); the index is periodically rebased. See the full tables in our passion asset statistics. Verify against the current primary source before citing in formal work.
Do passion assets beat the stock market?
On average, they did not beat the stock market over the last decade. The blended index rose about 39%, and even the leading categories largely trailed a dividend-reinvested S&P 500 near +200%. The case for passion assets is diversification, low correlation to financial markets, low volatility, and enjoyment of ownership. Outsized gains concentrate in the rarest pieces. The case is not based on beating equities on average. We examine one category in depth in are Birkin bags a good investment?
What are the record sale prices for passion assets?
Unlike index returns, category records are well documented and verifiable through auction houses. The register below gives the headline record for each major passion-asset class as of mid-2026. These figures are often cited as the ceiling of each market.
| Category | Record | Item | Sale |
|---|---|---|---|
| Art | $450.3M | Leonardo da Vinci, Salvator Mundi | Christie's, 2017 |
| Car | ~$142M | Mercedes-Benz 300 SLR Uhlenhaut Coupé | RM Sotheby's, 2022 |
| Jewel | $71.2M | CTF Pink Star diamond | Sotheby's, 2017 |
| Coin | $18.9M | 1933 Double Eagle | Sotheby's, 2021 |
| Handbag | €8.58M | The original Birkin (Jane Birkin's) | Sotheby's, 2025 |
| Watch | CHF 31M | Patek Philippe Grandmaster Chime | Only Watch, 2019 |
| Whisky | £2.1M | The Macallan 1926 | Sotheby's, 2023 |
How much of UHNW wealth is held in passion assets?
Around a fifth. Knight Frank's Wealth Report puts the average share of ultra-high-net-worth wealth allocated to investments of passion at roughly 20%. This includes art, cars, watches, jewellery, and wine. The figure varies by region and by the definition of "passion asset," so it is directional. Even so, it shows that many UHNW families make a material and deliberate allocation rather than incidental purchases.
Methodology
The Index aggregates publicly reported indices and auction results into one directional reference. The main source is Knight Frank's Luxury Investment Index. Supporting sources include Deloitte's Art & Finance research, Rebag's Clair Report, and results from Christie's, Sotheby's, RM Sotheby's, and Phillips. Return figures are indicative, before fees, and rebased between sources and editions. Record prices are verifiable. The Index frames the market but does not value a specific asset. That requires a valuation against current closed sales.
FAQ
The Passion Asset Index: quick answers
What is the Passion Asset Index?
The Passion Asset Index is Passion Asset Advisory's annual reference for the market in investments of passion. It covers luxury collectibles such as whisky, classic cars, art, watches, handbags, jewellery, and wine. It aggregates public indices and auction results, chiefly Knight Frank's Luxury Investment Index, into directional 10-year returns, record sale prices, and wealth-allocation context. The data is free to cite with attribution.
Which passion asset performed best over the last decade?
Rare whisky led the past decade at roughly +190%, with classic cars near +185% and fine wine and watches in the +135–145% range. Art and handbags were more modest at around +85–90%, and jewellery lower near +45%. The blended index rose about 39%. Returns concentrate in the finest examples, and figures are rebased between editions.
Do passion assets beat the stock market?
On average, passion assets did not beat the stock market over the last decade. Most categories trailed a dividend-reinvested S&P 500 of roughly +200%, and the blended index rose only about 39%. The case for passion assets is diversification, low correlation to markets, low volatility, tangible enjoyment, and outsized gains in the rarest pieces. It is not based on beating equities on average.
How often is the Passion Asset Index updated?
Annually, with the edition year in the title, and revised when the underlying sources publish new data. Figures are indicative and rebased between editions, so the latest edition supersedes earlier ones. For a specific asset, a valuation against current closed sales is more precise than any index average.
Sources & further reading: Knight Frank Wealth Report and Luxury Investment Index; Deloitte Art & Finance Report; Rebag Clair Report; Christie's, Sotheby's, RM Sotheby's, and Phillips results. Figures are indicative or as reported; record prices are verifiable. See our passion asset statistics, Birkin investment study, and what passion assets are.
Passion Asset Advisory
The index is the map. Your asset is the territory.
We value individual pieces against real closed sales, acquire and sell privately across six asset classes, and provide independent advice on the passion-asset allocation. This work is separate from the index.