{
  "id": 14923484,
  "title": "The ultra-rich are piling into Rolexes, rubies and Klimts as inflation hedges—but the real return may be about more than money",
  "url": "https://urgent.news/2026/10/16/the-ultra-rich-are-piling-into-rolexes-rubies-and-klimts-as-inflation",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-16T09:06:00.000Z",
  "source": {
    "name": "Fortune",
    "slug": "fortune",
    "url": "https://fortune.com/2026/10/16/ultra-rich-family-offices-luxury-assets-art-watches-inflation-hedge/"
  },
  "original_language": "en",
  "account": "A recent survey by BNY Wealth of 290 single-family offices managing fortunes of at least $250 million revealed a remarkable shift in investment priorities. Nearly half of these offices oversee over $1 billion in assets and a growing number—more than two-thirds—are allocating funds to uncorrelated assets, including luxury items like watches, fine jewelry, art, spirits, sports teams, and music rights. This trend suggests that the ultra-wealthy see potential in luxury assets as inflation hedges, particularly as inflation and possible central bank missteps loom as top risks over the next five years.\n\nExperts note that specific luxury assets, like sports and media rights, can offer protection against inflation through pricing flexibility and recurring cash flows. However, the most significant growth in recent years has been in tangible assets like watches, fine jewelry, art, and spirits. Despite mixed performance, these tangible assets have shown overall stability, with some even outperforming inflation over long periods. For example, fine art sales increased 11% last year, with notable sales such as Gustav Klimt’s Bildnis Elisabeth Lederer at Sotheby’s.\n\nResearch on luxury assets as investments is mixed, with studies indicating varying returns depending on the asset and the economy. While some luxury goods, like Chanel handbags, traditional Chinese art, and watches, have performed well in high-inflation periods, others, such as fine wines, modern art, and American/Latin American art, have underperformed. The Credit Suisse study highlights that specific tastes and choices in luxury goods matter more than the luxury category itself.\n\nThe allure of luxury assets extends beyond monetary gains; they serve as symbols of wealth and status, a concept known as \"conspicuous consumption.\" This is evident in the art market, where the value of art is influenced by the aesthetic pleasure it provides and the wealth it signals. High-end art prices are driven by the ability of the wealthiest to spend, reflecting a \"K-shaped\" economy where the wealthy earn and spend more than lower-income households.\n\nDespite these insights, the ultra-wealthy continue to invest heavily in emerging technologies like artificial intelligence, with AI ranked as the most compelling investment theme in BNY's survey. This reflects a broader trend where the ability to discern and make choices—seen as more art than science—becomes a differentiating factor in investment decisions.",
  "summary": "Nearly two-thirds of family offices now hold assets like art, watches and fine jewelry, a new BNY survey finds. The evidence on whether they pay off is mixed. Their value as a signal of wealth is not.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}