Almost one in ten (9%) adults, dubbed ‘magpie investors’, have invested in luxury items in the hope that they will increase in value and deliver an attractive return, according to new research* from Investec Wealth & Investment (UK).

They are investing in a wide range of assets including jewellery, watches, collectibles, classic cars, art, wine and whisky and even handbags and clothes.

The wealth manager’s study found that on average, magpie investors have invested over £40,000 each in valuable, luxury items and nearly half (47%) say they will invest more over the next five years. Of these, more than one in eight (13%) say the amount they plan to invest in luxury items will increase dramatically. Around a third (34%) say it will stay the same and 9% say it will decrease.

Around a quarter (25%) of magpie investors have invested under £5,000 while almost one in five (18%) have invested between £5,000 and £10,000 and one in five (20%) have invested between £10,000 and £25,000 in luxury goods. Around one in 20 (5%) have more than £100,000 invested in luxury items.

Magpie investors are most attracted to jewellery, with almost half (46%) saying they’ve invested in jewellery in the hope it will increase in value. The next most popular is watches (31%) followed by collectible items, such as cards or comics (27%). 

Top valuable items magpie investors have invested in

 Item% of adults who have invested in this valuable item
1Jewellery46%
2Watches31%
3Collectables e.g. cards, comics, books27%
4Cars24%
5Wine or whisky23%
6Art17%
7Accessories e.g. handbags, clothing16%

 

Gen Z, aged between 18 and 24, are the most likely to be magpie investors, with 21% of them saying that they have already invested in luxury items in the hope that they will increase in value and deliver an attractive return.

Preeti Rathi, Senior Investment Director at Investec Wealth & Investment (UK), Manchester, said: “Our research indicates luxury investments and especially high-end jewellery items have reached Gen Z as an attractive asset class for investment. Luxury items offer younger, cash rich investors the opportunity to turn their passions into profits. Whilst they may be lucrative, investing in luxury items specifically for financial gain requires expert knowledge to differentiate between ‘good’ and ‘bad’ investments. Furthermore, the illiquid nature of luxury investments needs to be considered – all that glitters is not gold.”

Investec Wealth & Investment (UK) works closely with high-net-worth individual clients to manage their wealth, and with charities, trusts and clients of professional advisers to help maximise returns on their investments as well as bring financial peace of mind.

-Ends-

Notes to Editors

1. * Investec Wealth & Investment (UK) commissioned independent research agency Viewsbank to interview 1,067 UK adults aged 18-plus during December 2023

For more information, please contact:

Investec Wealth & Investment (UK)

Anita Turland

07769 682373

anita.turland@investec.co.uk

Perception A

Phil Anderson

07767 491519

phil@perceptiona.com

 
About Investec Wealth & Investment (UK)

As one of the UK’s leading wealth management firms, we are trusted with managing £40.7 billion (as at 31 March 2023) of our clients’ money. Our wealth teams work hard at providing Out of the Ordinary levels of service to our clients and with an investment heritage dating back to 1827, we’re built for the long term.

Investec Wealth & Investment (UK) is a trading name of Investec Wealth & Investment Limited which is a subsidiary of Rathbones Group Plc. Investec Wealth & Investment Limited is authorised and regulated by the Financial Conduct Authority and is registered in England. Registered No. 2122340. Registered Office: 30 Gresham Street. London. EC2V 7QN. Member firm of the London Stock Exchange.

Investec Wealth & Investment (UK) is a trading name of Investec Wealth & Investment Limited which is a subsidiary of Rathbones Group Plc. Investec Wealth & Investment Limited is authorised and regulated by the Financial Conduct Authority and is registered in England. Registered No. 2122340. Registered Office: 30 Gresham Street. London. EC2V 7QN.