Luxury Market Remains Strong Amid Economic Concerns
The luxury market continues to defy economic downturn, with pricey clothing from Chanel and high-end Louboutin shoes flying off the shelves, even with marked-up prices. Auction houses are also reporting strong sales of goods such as wine and art, as investors seek tangible assets that may hold their value. Marc Porter, chairman of Christie's Americas, attributes this trend to a growing demand for tangible works of art, hard assets, and stable valuables that can withstand market volatility.
Key Takeaways:
- The luxury market has seen significant growth, with $3.2 billion in sales for the first half of 2011 at Christie's, a remarkable number.
- The market is driven by a desire for tangible works of art, hard assets, and stable valuables that can withstand market volatility.
- Christie's sales have been strong across all price levels, with over 400 lots sold for over $1 million and significant sales in the $20 million and above range.
- The Chinese market, specifically in Hong Kong, is driving a significant portion of the business, particularly in Chinese works of art and classic luxury goods like watches and wine.
- The sale of Elizabeth Taylor's estate in December will be a major highlight of the fall auction season, featuring the world's greatest jewelry collection.
- The Elizabeth Taylor collection includes a 33-carat D-color perfect diamond, as well as a vast collection of couture and memorabilia.
Statistics:
- $3.2 billion: The amount of sales for the first half of 2011 at Christie's.
- 400+ lots: The number of lots sold for over $1 million at Christie's.
- $20 million and above: The price range that has seen significant sales at Christie's.
- 33 carats: The weight of the D-color perfect diamond from Elizabeth Taylor's collection.
- December: The month when Christie's will auction off the Elizabeth Taylor estate.
Sources:
- Marc Porter, Chairman, Christie's Americas
- Pimm Fox, Bloomberg News Anchor
- New York Times
- Bloomberg Businessweek
- CQ-Roll Call