Alternative Investment News Round-up: Friday 11th December

Jewellery highlighted as top alternative investment for 2016

Jewellery has been highlighted as a top alternative investment for 2016 by Knight Frank’s latest Luxury Index.

Art has dominated the headlines, thanks to a series of record-breaking sales, including Picasso’s The Women of Algiers, which fetched $179 million at Christie’s in May, while Modigliani and Twombly also scored personal bests of $170 million and $70.5 million respectively.

Art, though, is a mixed market, while cars are not performing as well as they did in 2014.

Jewellery, on the other hand, has emerging as the star of the year, with Bonhams setting a new per-carat record for a spinel in September 2015, when the 50-carat Hope Spinel brooch was sold for £962,500.

Demand for coloured diamonds is down in China, one of the world’s leading jewllery markets, but one Hong Kong billionaire still set the all-time record with the $48.4m purchase of the Blue Moon stone at Sotheby’s Geneva in
November 2015, just one day after he spent $28.5m on a vivid pink diamond at Christie’s.

“Diamonds, especially larger and rarer ones, could represent a viable means for
wealth preservation owing to their increasing rarity and to their low correlation in prices with other assets,” advises Ehud Laniado, principal of diamond pricing consultancy Mercury Diamond.

Savills downgrades forecast for farmland values

Savills has reversed its previous forecast for farmland values, predicting that they will be lower in 2020 than now. Previously, Savills forecast a growth of 6 per cent in the coming five years, but has changed that outlook to a 4.1 per cent decline – from £8,100 in 2015 to £7,800 per acre (non-adjusted) – due to already recorded drops in prices and uncertainty surrounding the UK’s membership of the EU.

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Base metals less vulnerable than precious metals?

Base metals could prove less vulnerable than precious metals, when it comes to price performance.

While both have shown weakness this week, base metals such as nickel, copper, aluminium and zinc have overall proven more resilient than their shinier cousins gold, silver and platinum.

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