Globally, the current crisis situation has reduced the fortunes of many. Others, on the other hand, enlarged them, as was the case with Amazon owner Jeff Bezos. Others have speculated that the value of Bitcoin will increase and have filled their pockets. But Knight Frank Wealth Report 2021 shows that those with money preferred to invest in something else entirely. Other than Bitcoin.
Investments of rich people in the Pandemic
The economic crisis generated by COVID-19 pandemic it has created some chaos, especially when it comes to revenue. Many of us have lost their income, but this is not the case with the world’s millionaires and billionaires, who have managed to invest colossal sums in the famous Bitcoin cryptocurrency.
But that’s not all. According to a recently published report, it seems that in the Pandemic some of the world’s millionaires have decided to invest their money in something more stable. These are perennial values that last over time and for which time raises their value, not diminishes it.
The Knight Frank Wealth Report 2021 brings to light data on massive investments made in the Pandemic. In the midst of a global pandemic and related economic crisis, why should we be interested in the rich, you might ask? If we want to understand the performance of the market and assets, then they form a central part of the story.
According to Knight Frank Wealth Report, the number of those with a lot of money, despite the Pandemic, has increased in the last 12 months, by 2.4%. The process has been seen in North America and Europe. But Asia, with a 12% increase, has seen real growth. Wealth expansion has not been universal, with declining numbers in Latin America, Russia and the Middle East, as currency changes and the pandemic have undermined local economies.
The same report says that the United States is and will remain the world’s dominant wealth center. On the other hand, Asia recorded the fastest growth. This trend is also predictable for the next five years, at 39% compared to the global average of 27%.
Knight Frank Wealth Report shows a rising trend
The vast majority of the world’s millionaire investments in the Pandemic, according to the Knight Frank Wealth Report, were in real estate, luxury cars, invaluable works of art. In addition to these investments, many have invested in jewelry, diamonds, etc. The growing trend of these investments is in the Middle East, where most millionaires in oil come from.
Although still in the Pandemic, the report says that in the next period such investments will be found in the market. The report took in the viewfinder people with extremely high net worth. We are talking here about someone with a net worth of over $ 30 million.
“By 2025, Asia will host 24% of all the extremely rich. The percentage is up from 17% a decade earlier. The region is already home to more billionaires than any other. It is about 36% of the global total. The Chinese mainland is the key to this phenomenon. In China, there is a projected increase of 246% for very wealthy residents by 2025. ” Knight Frank Wealth Report.
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