The annual world wealth report produced by Capgemini and Merrill Lynch found that the world's population of high net worth individuals contracted to pre-2005 levels. This segment of the population, comprising 8.6 million individuals who own a total of $32.8 trillion in assets, lost 19.5 percent of its wealth in 2008. High net worth individuals were defined as those with at least $1 million in financial assets, excluding collectibles and residences.
Lifestyle spending, which includes the jewelry category, by high net worth individuals was significantly reduced in 2008. However, wealthy people did gravitate toward buying art and jewelry as investments, actually increasing their investment in these categories beyond their pre-recession levels, primarily as an additional means of "flight to safety," the report concluded.
Luxury collectibles, such as automobiles, yachts and jets, accounted for the largest portion of these "investments of passion" in 2008, at 27 percent. Individuals in Japan and in North America allocated the most funds to this category than those in any other region. The jewelry segment grew to become the third-largest passion investment in 2008, with 22 percent. High net worth investors in Asia and the Middle East allocated the most to jewelry, gemstone and watch investments.
Within the lifestyle spending category, purchases of luxury consumables fell 43 percent worldwide. Sixty percent of those in North America said they spent less on luxury consumables in 2008.
source: http://www.diamonds.net/news/NewsItem.aspx?ArticleID=26847
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