Knight Frank’s Luxury Investment Index (KFLII) rose by 7 per cent in the year to June 2013. This matches the increase in the value of residential property in prime central London over the same period and is in stark contrast to the 23 per cent fall in the price of gold since June 2012. The FTSE 100 index of UK listed equities performed slightly better, rising by 12 per cent.
Over a 10-year period, however, KFLII (+174 per cent), has significantly outperformed the FTSE 100 (+55 per cent), although gold still remains the top mainstream-asset performer (+273 per cent). But there has been a huge diversity in the performance of different assets, both in the short and long term.