Home-grown millionaires hold 10% of wealth in art, jewels and antiques

Ireland’s millionaires like to keep 10% of their personal wealth in assets such as fine art, precious jewellery, and antique furniture, according to the latest report in the Wealth Insights series from Barclays.

This is in line with global averages but even so, 73% of Ireland’s high-net-worth individuals — those with €1.25m in disposable liquid investments — find it is difficult to invest in things that will remain secure in terms of financial value.

Six in 10 Irish high-net-worths have invested in precious jewellery, followed by fine art (35%) and antiques (19%).

The report also found that despite the increased public interest in collectibles and record prices being set at auction, investors are far more likely to buy treasure assets for emotional rather than financial reasons, with only 19% of treasure held globally for financial motivations.

This figure drops to just 12% in Ireland.

The head of wealth management at Barclays Ireland, Pat McCormack, said: “There will always be both an emotional and a financial component to the decision-making process around “treasure assets”, but, given some of the difficulties associated with maintaining, securing, and liquidating these assets, our study suggests that it is the former that will always pay the greater return.

“Treasure may, if you’re lucky or very knowledgeable, give you a financial return, but buy something you enjoy and it will always give you an emotional return.”

Among global respondents, some of the treasure assets they hold is for social purposes such as showing it to people or sharing with friends.

Respondents from India say 75% of their treasure is collected, in part, as they like to show it to people, while the figure for China is 52%.

By contrast, the figures for Ireland, Britain, Switzerland, and Japan are all less than 20%.

Well over half (63%) of Irish wealthy respondents who own treasure consider at least one of their treasure assets to be priceless — they would not part with it at any price.

Under half of respondents (44%) globally who own precious jewellery, fine art sculptures, and antique furniture consider their treasure to be priceless, the report says.