Please enjoy this article on 'External Factors on the High Net Worth Collecting Markets' written by Quastel Associates' Managing Director Mark Smith; 

It would be fair to say that the United Kingdom (along with the rest of the world) has seen several major events over the last few years. The Covid 19 Pandemic, the war in Ukraine and here in the UK; Brexit. It is important to see how these events are impacting the values for fine art, antiques, collections and jewellery and watches for High-Net-Worth clients.

The pandemic meant opportunities to view and buy art in person were rare. Auctions and galleries moved online and the shift towards online sales saw huge increases. 

The buyer demographic across online sales also saw a sea change with new and younger buyers confident and eager to expand their investing portfolios. Wealthy clients had more time and disposable income and so invested in artworks, raising their value, particularly in 20th century and contemporary works.

Clients also diversified their collecting habits and invested in art, coins, watches, wine, and whisky. There have therefore been large increases in many of these sectors, meaning clients who have not had recent valuations could risk being grossly underinsured.

During unprecedented times of economic and political uncertainty, clients often shy away from more riskier investments such as shares and property and turn towards safer commodities.

Gold is one such commodity. Gold values have doubled since 2015 and are near their all-time high and this will ultimately have an impact on jewellery values. Therefore, if valuations are not kept updated, this could quickly lead to under insurance.

Gold, platinum, diamonds, and gemstones are also traded in US dollars. The weak pound has meant the cost of purchasing the raw materials of jewellery has increased dramatically and this is causing volatility in these markets.