Health of wealth
Dilip Bobb: Nov 18 2012, 02:10 IST
There are the rich and there are the super rich. Now, here’s the breaking news. Despite the ongoing global economic crisis, the monetary threshold to make it to either category keeps on rising, as do spending habits. In fact, a recent TV programme on CNBC in America showed that wealth is being created more quickly, dramatically, and controversially than ever before, fueling what’s been described as a “New Gilded Age.” Led by Russian oligarchs, business tycoons with dubious backgrounds and a newly rich political class, new age billionaires are keeping cash registers at luxury outlets ringing even as the less fortunate desperately juggle with their monthly household budget. That trend is reflected in the Wealth Report, 2012, an annual exercise conducted jointly by international property consultants Knight Frank and Citi Private Bank. In its research on trends in luxury spending, the Report notes that global spending on luxury goods actually rose 17% to exceed levels that prevailed prior to the economic crisis. A key area of that increased spend is investing in prime real estate, and not necessary in the country where wealthy individuals are based. Of the top ten international real estate property hotspots listed, Mumbai figures fairly prominently, presumably south Mumbai, where sea-facing luxury flats are in great demand.
Indeed, the super rich, defined by having a minimum average net worth of $100 million over the past 10 years, are investing heavily in art and jewelery, apart from real estate which basically means having a second home, and not
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