Passion & Money: Your Best Investment 2014 Fits on Your Wrist

Passion & Money: Your Best Investment 2014 Fits on Your Wrist

Passion & Money: Your Best Investment 2014 Fits on Your Wrist

 

Coutts Index reveals passion investments have risen 77% since 2005, outperforming shares

The Coutts Index

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.

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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.

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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.

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“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.”

About Coutts

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

Follow on twitter: @couttsandco

Sportswatch: Hublot unveils partnership with Paris Saint-Germain

Sportswatch: Hublot unveils partnership with Paris Saint-Germain

PARIS: Time to focus on the French capital which has seen some dramatic horological movements of late. Hublot the Swiss watch-maker has launched its brand new collaboration with PSG.

The French outfit have struck a deal which sees Hublot act as the offical timekeeper and timepiece of Paris Saint-Germain. Now that’s worth pulling out a bottle of Burgundy for!

Hublot

Prepare to be en garde as you cycle through Le Marais or stroll like a true flaneur round the Jardin du Luxembourg as the deal will create plenty of awareness for Hublot on and off the pitch.

Furthermore, if you visit the Parc des Princes for a match, be prepared to see a wealth of Hublot sponsorship around the stadium from LED advertising around the pitch to several Hublot signature clocks which will be specifically installed.

They will now be seen at PSG’s home ground, the Parc des Princes in a number of different ways. In addition, Hublot have gone all out and provided all of their players with watch to commemorate this particular partnership. Bravo.

PSG

This was in order to celebrate PSG winning Ligue 1 for the 2012-13 season. Meanwhile, this is not just the only involvement that the Swiss watch-maker has had in football.

They are official partners of FIFA and have been timekeepers at the 2010 World Cup which took place in South Africa not to mention the upcoming tournament in Brazil next year.

Hublot also work with a variety of clubs across Europe including major teams such as FC Bayern Munchen and Juventus. They have certainly scored plenty of impressive clients which have previously featured Manchester United.

HUBLOT - King Power FC Bayern Munich Limited Edition

Speaking at the launch Deputy CEO at PSG, Jean-Claude Blanc, said: “We are very happy to welcome a new prestigious international brand on board.

This three year deal has enhanced the porfolio of PSG itself as a global brand. Considered to be one of the European power houses of the future, the Qatari investment has no doubt been a significant factor in their growth and of course attracting a host of talent.

From Monsieur Beckham to the current stars of Monsieur Cavani from Napoli and Ibrahimovic, there is no doubt what the intentions of the Qatari owners are.

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In fact they have been swift in strengthening their commercial agreements of late thanks to signing up Nivea Men as official sponsor and Ooredoo.

This large Qatari telecommunications company have put pen to paper in a six year deal with a numerous benefits. This includes their name being plastered across the PSG training complex and kit branding.

“We are very happy to welcome another prestigious international brand to our sides. The ambition of Paris Saint-Germain is to become a sporting entity recognised all over the world, which sits perfectly with Hublot’s demand for perfection and aspirations towards elegance, present in all their watches.” added Jean-Claude Blanc, general manager of PSG.

UEFA Champions League Trophy Handover & Draw

Seems we will all be focusing on PSG’s movements in this year’s UEFA Champions League as they bid to win the title for the first time.

 

Written by Simon Lazarus

The hedge fund on your wrist

The hedge fund on your wrist

Smart fashion is now a wise investment. – The hedge fund on your wrist.

Investment-quality timepieces gain popularity amid market turmoil.

The world’s economies and stock markets have come to resemble the house of horrors and roller coaster, but there is nothing amusing about the summer of 2011 for investors. Bonds yields are at record lows even after Standard and Poor’s historic downgrade of the USA’s credit rating. Precious metals have risen steeply and then nosedived. Demand for gemstones and ethical issues are causing doubt. All of this leaves you with few vehicles to protect the assets.

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One shining ray of light in the darkness is the fine watch market. Unlike art and antiques, which require more expertise and carry more risk due to the volatile nature of the market, high-quality genuine watches are attracting investors interested in stability and an investment they can understand. Even those strapped for cash are benefitting from selling what was once strapped to their wrist.

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Fashion is less of an issue with a timepiece because more people wear great watches than collect great art, and a beautiful timepiece is more likely than painting or sculpture to be regarded highly by future generations and become an heirloom. Experts in horology are relatively easy to find, and their value assessments are likely to be an accurate reflection of the real market value for a given timepiece.

Many news sources, finance pundits, and investment advisors are reporting that alternative investments are gaining in popularity, but investors find few categories they can trust in troubled times. Add the advantage of being able to wear an elegant timepiece that has an actual function and owning an investment-value timepiece becomes a very attractive notion.

Worldwide increased demand has made the stock prices of manufacturers and retailers high enough to be reported by numerous sources. The following articles mention the record high prices of auctioned art, antiques, and jewelry (including luxury watches), the rising stock prices of watchmakers and dealers, and the sale of watches by some who have been hit hard by the global recession:

AOL Daily Finance’s The Motley Fool – Is Fossil the Perfect Stock?http://www.dailyfinance.com/2011/08/11/is-fossil-the-perfect-stock/

Bloomberg – Swatch First-Half Profit Rises 24%; Increases Hengdeli Stake – http://www.bloomberg.com/news/2011-07-28/swatch-first-half-profit-rises-24-increases-hengdeli-stake-3-.html

Bloomberg – Packard’s Vacheron Constantin Watch Triples to $1.8 Million at Christie’s – http://www.bloomberg.com/news/2011-06-15/packard-s-vacheron-constantin-watch-triples-to-1-8-million-at-christie-s.html

Bloomberg – Christie’s $5.8 Million Singing-Bird Pistols Lift Watch Salehttp://www.bloomberg.com/news/2011-05-31/christie-s-5-8-million-singing-bird-pistols-lift-hong-kong-sale-to-record.html

Boston Irish Reporter – Hangzhou store sales data: luxury half a year of links of London gold jewellery or surprising – http://www.bostonirish.com/node/15280

Chicago Sun-Times – Lou Gehrig items bring nearly $1M at Rosemont auction – http://www.suntimes.com/news/metro/6880321-417/lou-gehrig-items-bring-nearly-1m-at-rosemont-auction.htm

CNN Money – Pawning Rolexes to make payroll – http://money.cnn.com/2011/08/02/smallbusiness/small_business_loans_pawn_shop/index.htm

Yahoo! News – The Collections of Movie Icon Tony Curtis Are to be Offered at Julien’s Auctions in Beverly Hills – http://news.yahoo.com/collections-movie-icon-tony-curtis-offered-juliens-auctions-070858914.html

 

Cover image courtesy of Alon Ben Joseph

More than Gold. Pressure.

More than Gold. Pressure.

“Alchemy is the art of liberating parts of the Cosmos from temporal existence and achieving perfection which, for metals is gold, and for man, longevity, then immortality and, finally, redemption…”

H.J. Sheppard

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Courtesy of Hublot

On Thursday 15th December, in the Metallurgy department of the Hublot Manufacture in Nyon, Jean-Claude Biver, Hublot’s CEO, and Andreas Mortensen, a Professor at (Swiss Federal Institute of Technology Lausanne) unveiled a range of brand new alloys which are set to revolutionise the characteristics of precious materials and may also pave the way for new alloys to be used in the high-tech industry.

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Jean-Claude Biver, Hublot’s CEO

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Courtesy of Hublot

This presentation focused on a genuine “fusion” of 24-carat gold (the finest of the noble materials and a natural product) and the very latest in high-tech materials expertise. Almost three years of collaboration and research have gone into achieving this impressive result: a completely new type of noble gold, with patents pending and graded 18 carat by the Central Office for Precious Metals Control. Hublot’s 18-carat gold is the world’s first scratch-resistant gold, and as such eliminates the age-old vulnerability of gold and its alloys.

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Courtesy of Hublot

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Courtesy of Hublot

Hardness is a measure of a material’s resistance to indentation; doubling a material’s hardness means doubling the force required to produce a given indentation. Whereas “standard” high- quality 18-carat gold can reach 400 on the Vickers hardness scale, Hublot gold has a hardness rating of almost 1000 Vickers (most hardened steels are up to 600 Vickers). This makes Hublot gold the hardest in the world, and by some margin: it can only really be “scratched” by diamond.
Components made from this material are produced using a complex process: boron carbide powder is formed by cold isostatic pressing in moulds very close in shape to that of the finished part, e.g. watch cases, bracelets, bezels, etc. This ceramic – one of the hardest in existence – is also highly refractory: the preforms are then hardened at very high temperatures to create a rigid, porous structure without altering the shape. After this, molten liquid gold is injected under very high pressure. This operation is performed under inert gas pressure, at a sufficiently high temperature and pressure to ensure that the molten metal fills the pores in the ceramic, causing the two to “fuse” into a single new material.

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Courtesy of Hublot

The resulting 18-carat Magic Gold must, like other 18-carat alloys, be composed of 750 parts pure gold out of 1000, but the inclusion of ceramic makes this gold scratch-resistant, unlike traditional 18-carat gold.

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Courtesy of Hublot

Hublot has now passed the experimental stage for its new gold and acquired the means to produce the new material entirely in its own Manufacture, thanks to a high-tech foundry enabling processes such as refractory ceramic sintering and high pressure metal casting. The first watches made from Magic Gold was presented at BaselWorld 2012.

www.HUBLOT.com and @Hublot

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