Passion & Money: Your Best Investment 2014 Fits on Your Wrist
Coutts Index reveals passion investments have risen 77% since 2005, outperforming shares
Classic cars rise 257%
Classic watches up 176%
Billionaire property doubles in value
Passion investments returned 77% (local currency terms)* since 2005, outperforming shares, according to the first edition of The Coutts Index: Objects of Desire. Launched today, the new Coutts Index aims to provide the global benchmark for monitoring the performance of passion assets.
The Index, developed in conjunction with Fathom Consulting, captures the price return in local currency (net of the holding costs) of 15 passion assets across two broad categories: trophy property and alternative investments. Alternative investments can be further broken down into fine art, collectibles and precious items.
Of all the alternative investments Coutts examined for the Index, classic cars have returned the most since 2005, rising by 257%, outpacing all other investments by more than 80 percentage points over the seven and-a-half-year timeframe. Classic watches have also proved they can stand the test of time, rising by 176% from 2005 to 30 June 2013.
Jewels returned 146% in comparison, while the standout performer in the fine art space is the traditional Chinese works of arts sector, which rose by 163% between 2005 and 30 June 2013.
Over the past seven and a half years, the Coutts Index, based in US$ terms, has risen by 82% – over the same period, the MSCI All Country Equity Index has risen by 53%, based in US$ terms.
The Coutts Index incorporates a real estate component supplied by Savills World Research. Trophy property comprises ‘billionaire’ residential properties in the ten prime global city locations and ‘leisure’ properties in the world’s most desirable leisure destinations associated with these cities. Both measures lost value in the run-up to the global recession, but billionaire property values have risen strongly since, rising 100% from 2005 to 30 June 2013.
Mohammad Kamal Syed , Head of Strategic Solutions at Coutts, said: “The Coutts Index has been created to measure passion assets, or objects or desire, in terms of performance, cost of storage and currency. But while many alternatives have provided spectacular returns, there is more to investing in these assets than price appreciation. For many people, profit is furthest from their mind.”
He added that for many ultra-high-net-worth individuals, it is less about investing and more about purchasing – purchasing assets driven by their emotions.
“The benefit is more than just profit. Owners can bond with like-minded people in an elite network, with assets offering escapism and a chance to re-enact history. Indeed, there is one thing that the Coutts Index, for all its robustness, can’t measure – and that is happiness. The idea of someone paying $50m for an uncomfortable old car, with windows that don’t work and a noisy engine, seems illogical. In many ways it is. But the happiness such a car can bring is immeasurable.”
Coutts commissioned articles and interviewed experts for its first edition of the Coutts Index. They included Stanley Gibbons, the world’s leading stamp dealer, Berry Bros. & Rudd, the wine merchant and auction houses Sotheby’s and Christie’s.
Quentin Willson, broadcaster and classic car specialist, looked under the bonnet of the classic car market. He wrote: “If you had bought a 1970s Ferrari Daytona for £50,000 in 2003, it would be worth £250,000 today. A 1960s Aston Martin DB5 bought for £60,000 a decade ago would now command £350,000.”
“The question is whether the classic car market has peaked. I’ve been wondering whether the bubble will burst ever since prices started to rise in 2009. But they have kept on rising and were up 27% in the first half of 2013.”
Nick Foulkes, author, historian and watch enthusiast, revealed why he has been fascinated with watches since he was a child. He wrote: “I can still remember writing an article in the 1980s, saying that the price of an old ‘Paul Newman’ Rolex Daytona was about to overtake the price of a new one. Now you will be lucky to find one for under £70,000.”
“But not all watches will burn a hole in your pocket. Rolex recently launched some particularly attractive Day-Date models with brightly coloured dials. These recalled the original ‘Stella’ dialled Rolexes and are now creeping up in value, but these Day-Date models can still be purchased for four figures. And I still think that vintage Cartier watches are hugely undervalued.”
Coutts is the wealth division of Royal Bank of Scotland Group. Coutts serves clients from over 40 offices across the world offering tailored wealth management, banking, trust and tax services. Coutts is headquartered at 440 Strand, London with offices in other key international financial centres in Zurich, Geneva, Hong Kong, Singapore and Dubai. The division includes Adam & Company providing private banking services from Edinburgh, and RBS International, based in the Channel Islands, which provides offshore banking.For further information please visit www.coutts.com
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Revolution is certainly in the air. Forget your Che Guevara t-shirts and sit down protests, the Royal Oak by Audemars Piguet has been causing a stir of its own recently.
Recent reports have revealed the Swiss manufacturer has been carefully watching other timepiece companies very closely.
In fact they have already filed a suit in the last few weeks against a number of different brands including the Movado Group as well as Tommy Hilfiger.
Now what’s poor old Movado and Tommy H done I hear you cry? Well it turns out that AP has accused both respected brands of copyright.
The brouhaha is said to have unfolded over the Royal Oak watch that spookily resembles their versions. Why not see for yourself!
When it comes to the burning issue in question, the dispute seems to be over the TH Elon model that Movado is responsible for producing.
Audemars Piguet claims this particular model is very similar to their own Royal Oak product. If it is a copy then it’s a damn good one, but Royal Oak watches are sublime in their own right.
Let’s step back in time to Baselworld 1972 where time stood still for just a moment. Audemars Piguet launched their brand new steel watch which incoporated a number of different revolutionary features.
This included the likes of an integrated bracelet that had bold and innovative design at the heart of it. In addition to this, the AP Royal Oak took its inspiration from a diver’s helmet and offered a striking bezel in the shape of an octagon.
This was secured in place thanks to eight clearly visible screws as well as being waterproof with a dial that was beautifully adorned. Meanwhile, this particular watch was extremely slim at less than 8mm with a diameter measuring 39mm.
The AP Royal Oak has a rich and diverse history which has put it among the most glorious timepieces of its generation.
When it came to the movement, the self-winding Calibre 2121 was the weapon of choice, whilst the “Grande Tapisserie” motif is synonymous across the world.
The name itself derived from a nautical based theme with Audemars Piguet selecting Royal Oak, named after a collection of eight vessels, corresponding to the unique octagonal design.
These particular eight ships belonged to the British Royal Navy which in turn led to one of the most iconic names being christened in this most famous of Swiss watch makers.
Back to reality and legal papers were officially filed on August the 13th in New York City. It clearly states that AP have “protested, in writing” and have given their viewpoint on the areas where Movado has clearly breached.
This features charges relating to trade dress infringement not to mention a registered trademark infringement with Audemars Piguet looking for an injuction wherby it hopes to prevent any extra production of the controversial watches in question.
They are also hoping for not only the annihilation of the so called current watches but extra punitive damages on top. Time as they say is most definately man’s worst enemy in this case!
Written by Simon Lazarus
Gentleman, synchronize your watches and call up Marty Mcfly as we head back to 1970 for a glimpse at the Omega Chronostop Genève.
But before we do, we must stop to doth our caps at the wonder of Omega’s craftsmanship. Originally created in 1848, this high end Swiss watchmaker has been a favourite with many companies over a long period of time.
In 1917 when war rang out over Blighty, the British Royal Flying Corps selected Omega as their principal timekeepers whilst the US army took the same decision one year later.
In addition, Omega has been the weapon of choice for NASA and their astronauts whilst it even landed on the Moon at the end of the 1960’s. Now that’s cosmic!
Yet Omega has a number of different sporting connections and has had close ties with the Olympic Games for the best part of 70 years. Since 1932, it has acted as the timekeeping device and will be in the full spotlight when it comes to Rio 2016.
Currently, they are aligned with a wealth of actors and sporting stars including the likes of George Clooney, Spanish golfer Sergio Garcia and 2012 US PGA champion Rory Mcllroy. Now that’s the way to strike a winning partnership.
So what of the Omega Chronostop? As classic as a Disney film at Christmas, the 1970’s sparked a genuine retro design appearance. The Chronostop was launched four years earlier in 1966 and is considered to be one of the great sports watches of its kind.
In fact, the Chronostop version has received notoriety thanks to awards at the respected “Federation Horologer” contest.
This came before Omega’s intention to enter the International World Exhibition which took place in Montreal the following year. That’s quite enough build-up don’t you think so let’s drill down into the features of this particular model.
Genéve timepieces can plunge to depths of 30 metres while they offer more than 15 individual jewels and a host of impressive movements. There are big rectangular hour markers that can be seen on the 35mm face as well as a striking black dial.
Check out the bright orange timing feature not to mention the predominant oval bezel made from polished steel. This is precisely the same for the case back and is officially stamped.
Meanwhile, the highly regarded Omega Chronostop can be found toward the upper dial with the hippocampus symbol above the 12 o’ clock mark. Other highlights include Omega’s very own 865 movement reflecting their timely contribution to quality.
Suitable to impress at a casual pub lunch or dressed up at a trendy box social, this elegant beauty is ideal for any occasion. But as this timepiece was causing a stir, what about those world events?
Forget about tablet devices and Ipads as 1970 saw the floppy disc invented and the World Trade Centre was finally completed. It was also a time of sorrow and coming together for many screaming teens and adults as the Beatles finally said Adieu and parted company.
Perhaps they were right…maybe all you need is love.
Written by Simon Lazarus
Time is precious but none more so than the latest watch from the stable of Linde Werdelin. To mark Midsummer, they have recently launched the aptly named Oktopus II Double Date Titanium Red.
Oktopus II Double Date Red
Renowned for their sporting and diving timepieces, the company are making their own bold movements in the watch sector. Established just seven years ago, they have blended together their own dual specialities, blending the finest Swiss engineering with exquisite Danish design.
With all of their bespoke watches hand made in Geneva, Switzerland, Linde Werdelin have produced an exclusive to coincide with the recent 4th of July celebrations.
With only 88 individual pieces manufactured, this particular horological beauty is as exclusive as a Wimbledon after party. Hats off to Andy Murray though…and in temperatures reaching almost 50 degrees on court!
Anyone for tennis
Now that the heat is well and truly off the Scot, let’s delve a little deeper into The Oktopus II Double Date. After causing a stir at Baselworld 2012, this red model is also available in three additional colours; Titanium Blue, Titanium Yellow, Titanium Red, as well as Rose Gold Titanium.
So what are the main features? The titanium colour dial is a marvel to behold whilst the bezel is black ceramic which offers a striking contrast to the dial.
“The completion of the Reef and development of the Oktopus II case construction has granted us an unrivalled diving expertise and further confidence to develop a contemporary dive watch while enjoy experimenting with innovative combinations of materials and colours.” proclaimed Morten Linde.
The actual case does not disappoint either thanks to its maximum water resistance that’s as secure as getting into Fort Knox! This has been fully enhanced with an anti-corrosive agent due to the materials used in production.
With its central movement chamber, satin finish and turning bezel that records how long you have been under water, the Oktopus II Double Date Titanium Red is all set to make a splash of its own.
Waterproof up to 300m
Check out the etched octopus logo at the 3 o’clock mark not to mention the case back with an octopus sketch drawn by the great Morten Linde.
Other highlights on the Oktopus II Double Date feature the double layer dial with a Cote de Genève dial that looks similar to an aquatic rippling effect. The 44mm face is more than generous on the wrist and can be taken to depths of 300 metres if you are feeling a little nautical.
Make a date
The red strap is made entirely of rubber with an interchangeable option and for those concerned about power reserves, fear not as this model packs in 44 hours’ worth.
So if you are finally enjoying the hot weather that has come to the UK shores, this watch is more than likely to impress your friends over a glass of Pimms or at a long and lazy summer barbeque.
Time for Pimms
The Oktopus II Double Date is priced at 10,200CHF excluding VAT which is just a smidgen over £7,500. Now is definitely the time to invest in such a beautiful piece of arm candy.
As the sands of time slip by, one place in the capital exudes elegance and sophistication beyond its years. Burlington Arcade in the heart of London town stretches back to the Victorian period. Opened in 1819, it runs through both Piccadilly and Bond Street.
Shoes by Thomas Lyte and Pickett not to mention Penhaligon’s and the House of Cashmere, this exclusive Aladdin’s cave of items will satisfy even the most discerning client.
However, Burlington Arcade is also the location where you will find an array of stunning timepieces dotting the runway of exquisite craftsmanship and innovation.
As vintage as the Great Gatsby, why not explore one of Britain’s first shopping arcades and take a look at some of the incredible antique watches adorning some of the windows.
So what lies in store? The Vintage Watch Company is one not to miss on your horological adventure. It is home to the biggest collection of vintage Rolex pieces in the world. Be inspired by more than 800 individual models that date back as far as the beginning of the 20th Century.
Time, as they say, is certainly precious and you can expect to pay upwards of £2,800 as a starting point! With each watch being carefully restored in house by their own Rolex experts, it is a price worthy of its engineering prowess.
All this watch appreciation is thirsty work. If you have some time of your own then don’t miss out on the magnificent Ladurée tearoom which offers a range of the most delicate macaroons you may ever sample.
This is aside from the variety of delicate viennoiseries, patisseries and tea blends that will ensure you keep a steady pace.
Feeling refreshed? Then take a stroll to Somlo Antiques which can be found at Number 35-36. Operating since the turn of the 1970s, it is considered to be one of the leading sites when it comes to not only vintage watches but stunning antique pocket watches.
It is also the place to find several vintage Omega pieces – a real feast for the eyes! Meanwhile, a hop and a skip away lies David Duggan. Situated at number 62-63 Burlington Arcade, this is one of the standout stores across this runway of retail therapy.
Inside you will have the chance to admire an exclusive range of incredible timepieces. This includes the likes of numerous watches across several brands such as Audemars Piguet as well as Breguet and Panerai.
Finally to round off your session, check out Armour Winston. This is definitely a family affair as he has a background with watches that stretches back three generations.
He has been in Burlington Arcade for the best part of half a century and has seen a few superb pieces in his time. Yet his speciality is on vintage watches that take in a range of luxury brands from Patek Philippe to Cartier. Beauty, as they say, is the eye of the beholder.
Burlington Arcade is easily accessible from either Green Park or Piccadilly Circus tube stations and is located opposite the prestigious Royal Academy.
Which watch will you want? Now say that ten times.
As London swung their pants to the beats and sounds of the early 1960’s, the Rado Musketeer VI burst onto the watch scene.
With today’s models around the four figure mark such as the Jubilé and the Ceramica series, why not delve into the back of your wardrobe to see what’s lying around. Yet some models featuring high end baguette diamonds can fetch in the region of £100,000.
Diamonds are certainly forever as Shirley Bassey harped on about, but since the late 1950’s this Swiss watch maker has stood the test of time.
This is thanks to its innovation and high level of creativity which back in 1962 led Rado to bring out its first ever scratch resistant timepiece called the Diastar.
After this period, the brand were notorious for their diverse variety of materials including high tech ceramic and have even manufactured the world’s toughest watch known as the V10K.
Although there’s no need for a shovel, let’s dig deeper into why the Musketeer should go straight into the vintage hall of fame. Get ready for that classic countdown theme pop pickers.
Well on first glance, the TV style aperture coupled with a host of bronze tones really evokes a golden period when The Waltons were just a bunch of baby faced television assassins!
In addition to this the batons and hands are made from chrome while there is a nifty calendar window that includes both the day and date.
This particular Rado is resistant to any scratches and features a stainless steel bracelet not to mention acrylic crystal, a movement which boasts 25 jewels and a subtle 36mm diameter.
Porthos and Dogtanian wait in line as this Musketeer oozes style and class. The patterned satin white dial radiates brightly and would make a fine piece of arm candy.
On the face of it (no pun intended) you can take advantage of a number of additional features such as a bevelled case made from stainless steel, a sunray grid and the “Musketeer VI” itself emblazoned at the 4 o’ clock mark.
Meanwhile, the Rado symbol is embossed for all to see not only on the fold over clasp but on the case back. This is all finished off with an impressive gold-filled bezel that definitely has the Midas touch.
Even back then clients were looking for a taste of the Swiss Family Robinson. Yet owning a Rado such as this was considered to be a status symbol even more than 40 years ago.
But what other timely events were happening around the world at the beginning of the 1960’s? This killer watch may have influenced the great Alfred Hitchcock as Psycho was released.
As the Musketeer VI Automatic grabbed the attention of many a watch groupie, the world was in crisis. So what’s changed you might ask!
In 1961, the Berlin Wall was constructed which was coupled with the infamous Bay of Pigs Invasion. Unfortunately what has stood the test of time is David Hasselhoff’s performance when the wall finally came down in 1989.
Check it out here and watch out for the Hoff’s flashing leather jacket which no matter how hard the crowd clapped would not set alight.
1962 saw the Cuban Missile Crisis and the launch of one of the biggest movie franchises in cinematic history. How about another martini Mr Bond?
It was also the same year where events were shaken up with the death of iconic actress Marilyn Monroe and the first ever Wal-Mart store.
Watch out next time for…the Omega Chronostop Geneve 1970.
Written by Simon Lazarus