Journal · Reference
What are passion assets?
What are passion assets, exactly?
A passion asset is a high-value physical possession owned for enjoyment as much as for the value it may hold — the category sits between a luxury purchase and an investment. The main classes, and how each behaves, are below; each links to how we source and sell it.
| Category | Typical entry | Liquidity | What drives value |
|---|---|---|---|
| Fine art | Tens of thousands+ | Low | Artist, provenance, condition, market depth |
| Collector cars | $100k+ | Moderate | Chassis, matching numbers, history file |
| Watches | $10k+ | Moderate–high | Reference, originality, papers |
| Handbags | $10k+ | Moderate–high | Leather, size, hardware, condition |
| Superyachts | $1M+ | Low | Builder, condition, refit, running cost |
| Private aircraft | $2M+ | Low | Hours, programs, records, configuration |
Indicative figures for mid-2026; jewelry, fine wine, and rare collectibles are also passion assets. See category pages for detail.
How do passion assets perform as investments?
Unevenly, and that is the point. Long-run indices — Knight Frank's Luxury Investment Index, the Deloitte Art & Finance reports — show some categories outpacing inflation over a decade while others stall, with returns concentrated in the finest examples. Passion assets are illiquid, carry insurance and storage costs, and reward selection. We weigh the honest case for each on is art a good investment? and collect the numbers in passion asset statistics 2026.
How big is the passion-asset market, and who buys?
It is a multi-trillion-dollar market. Art and collectible wealth held by ultra-high-net-worth individuals reached about $2.56 trillion in 2024 and is projected to reach $3.47 trillion by 2030, and roughly 89 new UHNWIs are created every day (Deloitte; Knight Frank). Most ultra-wealthy investors now treat passion assets as a serious diversifier — in one 2024 survey 82% called it "a good bet for the future" — while allocating around 10% of wealth to art and collectibles alone. See the full passion asset statistics for the data and sources.
What is passion investing?
Passion investing means allocating capital to passion assets with an eye to value, while accepting illiquidity in exchange for use and enjoyment. The discipline is the same as any acquisition: define the objective, verify before commitment, and pay a defensible price. The difference is that you can wear, drive, or hang the asset while you hold it — the return includes the living-with.
What is luxury asset management?
Luxury asset management is the professional oversight of a passion-asset collection — verified inventories, documentation, insurance posture, and a written acquisition and exit policy — usually on an independent, flat-fee basis. It brings the rigour applied to financial assets to the things on the wall, in the hangar, and in the safe. Our practice is described under advisory and family-office advisory.
Which passion assets hold their value best?
The best holders share three traits: deep, global demand; verifiable scarcity; and documentation that survives scrutiny. Blue-chip art, allocation-only watches, matching-numbers classic cars, and Hermès Birkins and Kellys lead; mass-produced "luxury" rarely holds. Within every category, the specific example — its condition, provenance, and papers — matters far more than the category average.
FAQ
Passion assets — quick answers
What counts as a passion asset?
Passion assets are high-value physical things owned for enjoyment as much as return: fine art, classic and collector cars, watches, jewelry, designer and Hermès handbags, fine wine and spirits, superyachts, and private aircraft. Rare books and even guitars qualify. The common thread is tangible scarcity held outside a conventional securities portfolio.
Are passion assets a good investment in 2026?
They can hold and grow value over long horizons, and indices such as Knight Frank's track their performance, but they are illiquid, carry holding costs, and reward selection over the category. The honest position: buy passion assets for use and enjoyment first, treat appreciation as a bonus, and verify quality and provenance before price.
Why are they called investments of passion?
Because the owner's enjoyment is part of the return. Unlike a stock, a passion asset can be worn, driven, flown, or hung on a wall while it is held. The term, popularized by wealth reports, captures assets bought partly for love of the object and partly for the value it may retain or build.
Do passion assets belong in a portfolio?
They are a complement, not a substitute. Many family offices treat passion assets as a small, satellite allocation valued for diversification, inflation resistance, and enjoyment — not for yield or liquidity. The sleeve deserves the same rigour as the rest of the balance sheet: verified inventories, insurance, and a documented acquisition and exit policy.
Sources & further reading: Knight Frank Luxury Investment Index; Deloitte Art & Finance Report; auction results from Christie's, Sotheby's, and Phillips. Figures are indicative and verified against primary sources where cited.
Passion Asset Advisory
One office for the assets that make up a life.
Acquisition, discreet sale, and flat-fee advisory across art, cars, watches, bags, yachts, and jets — private-market access, independent diligence, discreet execution.