Wondering what rich people invest in? They typically invest in a range of inflation-resistant assets that provide a passive income to protect family wealth.
With inflation soaring, the rich seek to preserve their wealth through a combination of tried-and-tested investment structures and modern-day assets that are likely to reap dividends for early adopters. Real estate, art, and gold are amongst the most popular investment assets with the world’s richest. Read on to learn more about what the rich are investing in now.
Luxury real estate remains one of the most popular investments for the world’s richest. Wealthy people invest in real estate as it continues to give healthy returns. Take, for example, the Principality of Monaco, the world’s most expensive real estate market. Monaco has seen property prices rise by an incredible 75% over the past decade, ensuring investors a solid return on investment. The principality’s luxury offerings and political and economic stability ensure property for sale in Monaco remains an attractive investment. Real estate provides an attractive hedge against inflation and is a proven way to build capital. An investment property can also provide a lucrative income stream. However, one of the downsides is its lack of liquidity.
Another asset that rich people invest in is art. Art is considered a unique asset class, which is often immune to economic shocks. Indeed, when stock prices dip, art tends to hold its value. According to Statista, the global art market is valued at US$65.1 billion and is anticipated to grow, especially as investors seek investments that can ride out market volatility. As art is a tangible asset, it can perform well during periods of rising inflation, making it a popular investment with rich people seeking a diverse portfolio. Just like real estate, art lacks liquidity, as it can be time-consuming to sell a valuable piece of art. This means art is often best used as a long-term investment.
Wondering what else rich people are investing in now? Well, the tech-savvy and early adopters are dabbling in NFTs. Non-Fungible Tokens have grown in popularity over the past few years. NFT’s indicate ownership of a digital asset, such as art, digital clothing, an item within a video game, musical composition, or even real estate in the metaverse, with ownership protected by a blockchain, providing asset security. However, as a relatively new form of asset, they are risky as the long-term return on investment is unknown.
Wealthy people also invest in gold. Investing in this precious metal provides stability, especially in times of economic turbulence, while also providing diversification to investment portfolios. Gold is a limited commodity – according to the World Gold Council, about 90% of the world’s gold has already been mined – meaning it is highly susceptible to global demands. According to the WGC, in 1992, the price of gold was around US$200. Earlier this year, it was priced at over US$1,500, an eight-fold increase, providing a sound return on investment.
So, now you know the answer to ‘what do rich people invest in?’ What other investments would you add to our guide?