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Luxury Assets Used by the Super Wealthy to Stay Rich

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Published
03/19/2021

Where do the super-wealthy actually keep their money? You won’t find the bulk of their fortunes sitting around in a no-interest savings account with the local bank, that’s for sure. They invest in the usual things – stocks, bonds, real estate – but with all that extra wealth comes more room to explore unconventional assets.

They look for assets that come with a bit of prestige, commodities that will likely appreciate but that still come with a sense of luxury and status. Some of these investments are meant to preserve their value over decades (or centuries) to provide generational wealth, while others are more speculative investments that have the potential to multiply in value. Let’s take a look at what the super-wealthy today are buying to maintain their fortunes.

#1 Gold and Silver

Gold and silver bars and coins have always been seen as one of the most reliable ways to preserve wealth for generations. From ancient royalty to today’s most successful investors, gold provides a unique opportunity for those who want to ensure their wealth survives inflation, recessions, and unforeseen crises.

The most reliable way to own precious metal is to physical own gold and silver bullion. You can purchase gold bars and coins directly from sources like Globalbullionsuppliers.com if you want to own physical bullion.

In times of economic uncertainty, demand for gold bars rises, especially among investors who want to make sure their stock positions are protected. Gold is a well-known defensive strategy that works well for investors with considerable net worth.

#2 Exclusive Real Estate

Exclusive real estate goes beyond your standard REIT, rental property, or pied-a-terre. Rather than provide an income stream or big speculative gains, exclusive real estate tends to include historical properties or homes built by starchitects.

These are not deals that typically hit the open market. They’re off-market deals between friends, acquaintances, business colleagues, etc. They also include wholesale real estate deals and purchases that will maximize tax breaks.

#3 Fine Art

The high-end art market is fuelled by wealthy investors looking for pieces that will not only maintain or rise in value over the years but also rub off some prestige. The thinking is that the right fine art piece will always have an interested buyer in the form of a true collector or institution. Those buyers don’t go out looking for a bargain on the market. They want very specific pieces and have the funds to acquire them.

#4 Wine and Whisky

For a different kind of liquid asset, sometimes the super-wealthy turn to wines and whiskies as a way to hold onto value and show off their knowledge of a specialty product. It’s certainly a riskier area of investment than most assets and one that lends itself to expertise. There are certainly examples of vintages and whisky bottles that have delivered great returns, but these are assets that definitely fit the interest of a hobbyist or collector who likes their investments to come with a story.

The majority of the super-wealthy’s assets remain in portfolios that probably aren’t that different from the average investor’s. Nevertheless, with the extra wealth comes more opportunities to branch out into unique opportunities that satisfy unique goals.

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