Art - The Worst Performing Passion Investment in 2013

CNBC has an article and accompanying video on a new report from Knight Frank and WealthInsight that lists returns from passion investments over the past year.  The list has automobiles at the top with a 28% return, and fine art at the bottom of the list, even below furniture at a negative 3%. Keep in mind this is for last year, the five year mark is not much better at 2%, while the 10 year return is an impressive 193%, but still well below the 456% return on autos. Overall some interesting information

Click HERE for the Luxury Investment page from Knight Frank for more details.

CNBC reports on the study

The headlines of the past year would make you think that art prices are exploding. There was the $142 million Francis Bacon painting, the $58 million balloon dog and the $1 million Picasso cigar.

But those pieces represent a tiny slice at the top of the art market. When you look at values in the broader art market, the picture becomes a little less flattering. (See this piece by James Stewart in The New York Times for the best analysis.)

According to a new report from Knight Frank and WealthInsight, fine art was the worst performing collectible last year, with prices down 3 percent. The performance is based on an index from Art Market Research, which includes old masters, European 19th century, impressionists, modern and contemporary.

The report said the overall art market is still down from its 2011 peak. Granted, over a 10-year period, art is still a good investment, according to the report, with a return of 193 percent.

And art is still popular with the wealthy, since many see it as more than a financial investment. The survey showed that among people worth $30 million, art is "growing in popularity" among 44 percent of them—making it the most popular class of collectibles.  Art was followed by wine and watches—suggesting that pleasure matters more than profits when it comes to collecting.

So if art was the worst investment last year, what was the best?

Cars were the best performing collectible in 2013, up 28 percent. Cars are also the top performer over a 10-year period, up 456 percent.

Here is the full list of collectibles and their returns from 2012-2013:

Collectible market growth
Rank Type of collectible Percentage of increase
1 Cars   28%
2 Coins 10%
3 Stamps 5%
4 Watches 4%
5 Wine         3%
6 Jewelry 3%
7 Chinese ceramics 3%
8 Furniture -2%
9 Art -3%
Source: Knight Frank and WealthInsight

 

Source: CNBC