Navigating the Luxury Collectibles Market in 2025: Key Insights from 2023 for Collectors

Every year, Knight Frank's Wealth Report unveils insights into how the world of luxury collectibles is evolving—and 2023 was no exception. The Knight Frank Luxury Investment Index (KFLII), which tracks the performance of luxury assets, posted a modest 4% growth overall. But within that average lie sharp rises, deep dips, and invaluable signals for collectors, investors, and insurers alike.

Top Performing Luxury Collectibles in 2023

Despite overall slower growth, certain categories demonstrated exceptional resilience and market demand.

Watches (+10%)

Watches topped the performance charts. High demand for iconic, limited edition, and vintage timepieces drove up values, especially models from Rolex, Patek Philippe, and Audemars Piguet. The Rolex Daytona and Patek Philippe Nautilus emerged as auction favorites.

Jewellery (+8%)

Jewellery saw continued interest from collectors, particularly as a tangible and wearable store of value. Demand was especially strong among female buyers, and gemstones like colored diamonds and sapphires held their ground.

Wine (+5%)

Classic French regions, particularly Bordeaux and Burgundy, led the wine market. While not as volatile as other segments, fine wine remained a safe investment for those focused on preservation and appreciation over time.

Art (+4%)

The global art market showed modest gains, with standout performances in Modern and Contemporary categories. Artists like Jean-Michel Basquiat, Gerhard Richter, and Yayoi Kusama remained at the forefront of collector demand.

Declining Categories

While the top categories thrived, others faced valuation corrections or shifting buyer sentiment.

Classic Cars (-6%)

The once-booming classic car market cooled. Though iconic models from Ferrari and Porsche still held interest, the broader market saw buyers becoming more selective.

Handbags (-4%)

Designer handbags saw a decline after a post-pandemic boom. Despite the dip, Hermès Birkins and Kellys still dominate the luxury resale landscape, with limited-edition and exotic leather models retaining value better than others.

Rare Whisky (-9%)

Whisky took the hardest hit. While The Macallan remains a top name, prices for rare bottles softened as investors shifted focus to more stable or mainstream luxury categories.

What This Means for Collectors in 2025

• Watch the resilient categories: Watches and art have shown steady long-term demand and could be safer bets for appreciation.

• Seek underpriced opportunities: Whisky and classic cars may now offer entry points for collectors willing to hold for the long term.

• Reassess asset valuations: With prices fluctuating, it’s vital to update insurance coverage based on current market values.

• Know what to hold and what to move: Sellers can maximize profits by capitalizing on demand trends and understanding what categories are cooling.

Closing Insight

In the world of luxury collectibles, trends shift with culture, market sentiment, and generational values. Staying informed isn’t just smart—it’s essential for preserving and growing the value of your portfolio. As 2025 unfolds, smart collectors will balance passion with strategy, emotion with data.

Interested in how shifting valuations impact your insurance coverage or portfolio planning? Get in touch with our collectibles team today.