Collectibles Report 2024 Part 1: A Great Year for Splint Invest
Introduction
This blog is the first of three parts, based on the Collectibles Report 2023/2024. Click here to download the Splint Invest Collectibles Report 2023/2024 and read it in full.
The series will highlight the key investment categories, trends, and market developments from the report, which focuses on alternative investments in luxury goods. Splint Invest, a platform for alternative investments, has analysed the performance of these tangible assets and provides valuable insights into the performance of the major investment categories. Below are the key takeaways on the current developments in these categories and why they present an interesting alternative to stocks in times of economic uncertainty.
Our Mission and Milestones for 2023/2024
At Splint Invest, our vision is clear: we want to make alternative investments accessible to everyone, regardless of their financial situation.
Over the past year, our user base has grown significantly: from 4,948 active users in July 2023 to an impressive 14,427 active users in June 2024 - a growth of 192%. This significant increase in our user base highlights the rising demand for alternative investment opportunities and the trust investors place in our platform.
The gross total value of the assets published on our platform has also risen exponentially. In June 2024, the total value of published assets reached €19,193,070, compared to €5,107,480 the previous year, representing a remarkable growth of 276%. This growth was supported by the introduction of new investment categories, offering our users a broader range of investment opportunities.
During the same period, the number of investments published on the platform increased from 122 to 346, a growth of 184%. This diversified and growing portfolio is a testament to our continuous efforts to select and publish high-quality investments that offer significant value to our investors.
Splint Invest Portfolio Allocation
Art, cars, handbags, wine, and watches. These categories together constitute a significant portion of the portfolio and have proven their stability and growth potential in a challenging market environment. Art dominates the portfolio with 45.9%, reflecting the high demand for works by established artists. Cars, particularly modern classics, make up 6.8% of the portfolio and have proven to be reliable assets. Handbags (5.3%) and wine (6.6%) also offer long-term value appreciation opportunities, driven by limited availability and high demand. Watches, with 11%, are also a key part of the portfolio and have positioned themselves as stable luxury assets despite market fluctuations. These focus categories reflect Splint Invest's diversification strategy and highlight the importance of investing in rare and exclusive tangible assets that promise long-term growth.
Performance of the Last 12 Months
Splint Invest's strategy of working with top experts has proven crucial in achieving above-average returns across various asset classes.
This can be clearly seen in the performance above, which shows that Splint Invest outperforms every category index, except for wine which is a narrow miss by just 1%.
Art: Stability and High Returns
Art has proven to be one of the most stable investment categories in 2023. Works by renowned artists like Marc Chagall, Pablo Picasso, and Jean-Michel Basquiat have not only retained their value but in some cases have seen significant increases. Through smart acquisitions and collaborations with leading experts such as Artemundi and Maddox, Splint Invest was able to achieve exceptional returns of up to 25.6%. An example of this is the sale of Chagall's The Sleep of Love, which brought a net return of 15.4% after just two months.
The art market continues to be dominated by established artists, while the ultra-contemporary art sector is losing momentum. Interestingly, younger generations, especially Millennials and Generation Z, are increasingly investing in art, reflecting the growing recognition of this category as a solid and rewarding form of investment.
Cars: Robust Investments in Modern Classics
The classic car market has also proven to be resilient, with modern classics increasingly in the spotlight. Splint Invest's partnership with The CarCrowd has shown that vehicles from the 1990s and newer are particularly popular among younger collectors, achieving a return of 16.9%—well above the market return of -6.0%. Brands like Ferrari and Maserati remain popular investment objects.
Although the classic car market has experienced some correction after a boom during the pandemic, demand for certain models remains stable. The CarCrowd expects this trend to continue, particularly as modern classics find their way into the collections of Gen X and Millennials.
Handbags: Luxury with Steady Value Appreciation
The luxury handbag market, particularly limited models from Hermès, remains robust. While traditional markets experienced fluctuations in 2023, the handbag index grew steadily. Investments in handbags achieved a return of 7.5%, significantly outperforming the market benchmark of -4.0%.
Notably, Hermès models like the iconic Birkin and Kelly have proven to be not only fashionable accessories but also stable investments. In a market driven by supply and demand, limited pieces and rare designs tend to command especially high prices.
Wine: Challenges and Opportunities
Wine, traditionally a stable investment category, experienced a slight decline in 2023. Splint Invest's wine portfolio achieved a return of -3.2%, remaining above the benchmark index of -9.7%. Despite this decline, wine remains an interesting investment option due to its long-term value appreciation and cultural significance. Splint Invest plans to revitalize the wine segment through a partnership with WineFi, making it easier for investors to access fine wines.
Conclusion
In the first part of this blog series, we focused on the allocation and performance of art, cars, handbags, and wine. It is evident that these luxury goods have remained resilient in a year of economic uncertainty and, in some cases, achieved remarkable returns. In the upcoming blogs, we will delve further into these and other categories. Stay tuned!
