Luxury Market Strength Confirmed By 12th Annual World Wealth Report

According to the 12th annual World Wealth Report from Merrill Lynch and Capgemini, the world's wealthiest individuals continue to purchase objects of luxury with undiminished enthusiasm. Analyzing the habits of High-Net-Worth and Ultra-High-Net-Worth Individuals, the report illustrates that despite 2007's market turmoil, those with great wealth spent considerable amounts on exclusive luxury goods, including exotic cars, private jets and custom-built yachts, and fine watches and jewelry.

By percentage, automobiles, jets, and yachts made up 16.2 percent of such passion investments, while fine art came in at 15.9 percent.  Jewelry ranked third, with a 13.8 percent of the total, with travel just slightly behind at 13.5 percent.  In some regions, such as Asia and the Middle East, the jewelry and watch category was the primary focus of investment.

Another finding of the World Wealth Report is that emerging markets are having a much larger influence than in past years.  Capgemini Managing Director Bertrand Lavayssierre weighed in on this phenomenon, in a media statement from Thursday: "Even as financial market turmoil impacted the United States during the second half of the year, luxury goods makers, high-end service providers and auction houses all found ready clients in the emerging markets of the world—most notably, China, India, Russia and the Middle East—thereby sustaining their own growth."

The Merrill Lynch and Capgemini report has been seen by some analysts as confirmation of a historical precedent that high-end investments and purchases of all categories tend to be strong even during economic downturns.  It is also speculated that the emergence of new wealth and and increasing consumer base in Eastern Europe, Asia, and the Middle East will provide a powerful offset to the economic difficulties being experienced in the West.

Click here to view the detailed report.