Journal · Reference
What are passion assets?
According to Passion Asset Advisory, we advise across six asset classes: jets, yachts, art, watches, bags, and cars. We work through mandates and alongside your wealth manager, never in place of it.
What are passion assets, exactly?
A passion asset is a high-value physical possession owned for enjoyment and for the value that it may retain. It sits between a luxury purchase and an investment. The table below explains the main categories and how each one behaves. Each category links to our acquisition and sale service.
| 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?
Performance is uneven. Long-run sources such as Knight Frank's Luxury Investment Index and the Deloitte Art & Finance reports show that some categories have outpaced inflation over a decade while others have stalled. Returns are often concentrated in the finest examples. Passion assets are illiquid, carry insurance and storage costs, and require careful selection. We assess the case for art in is art a good investment? and collect market data 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. Roughly 89 new UHNWIs are created every day, according to Deloitte and Knight Frank. In one 2024 survey, 82% of ultra-wealthy investors called passion assets "a good bet for the future." They allocated around 10% of wealth to art and collectibles alone. See our passion asset statistics for the data and sources.
What is passion investing?
Passion investing means allocating capital to passion assets while accepting illiquidity in exchange for use and enjoyment. The process is the same as for any acquisition. Define the objective, verify before commitment, and pay a defensible price. Unlike a security, the asset can be worn, driven, flown, or displayed while it is held.
What is luxury asset management?
Luxury asset management is the professional oversight of a passion-asset collection. It can include a verified inventory, documentation review, insurance review, and a written acquisition and exit policy. This work is usually delivered independently for a flat fee. It applies financial-portfolio rigor to assets on the wall, in the hangar, and in the safe. See our luxury asset management advisory and family-office advisory services.
Which passion assets hold their value best?
Assets that hold value well usually have three traits: deep global demand, verifiable scarcity, and documentation that survives scrutiny. Examples include blue-chip art, allocation-only watches, matching-numbers classic cars, and Hermès Birkins and Kellys. Mass-produced luxury items rarely perform in the same way. Within every category, the specific asset's condition, provenance, and papers matter more than the category average.
FAQ
Quick answers about passion assets
What counts as a passion asset?
Passion assets are high-value physical objects owned for enjoyment and potential return. They include fine art, classic and collector cars, watches, jewelry, designer and Hermès handbags, fine wine and spirits, superyachts, and private aircraft. Rare books and guitars can also qualify. The common feature is tangible scarcity 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 can complement a portfolio but should not replace liquid financial assets. Many family offices use a small satellite allocation for diversification, inflation resistance, and enjoyment rather than yield or liquidity. The passion-asset sleeve needs the same rigor as the rest of the balance sheet, including a verified inventory, appropriate 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.
We provide acquisition, discreet sale, and flat-fee advisory services across art, cars, watches, bags, yachts, and jets. Each mandate combines private-market access, independent diligence, and discreet execution.