Wealthy investors spend more time pursuing their hobby of amassing extensive collections for pleasure rather than profit, according to a new survey by UBS Wealth Management Americas.
The report shows that most investors consider their collections to be valuable, comprising about 10 percent of their wealth on average.
Among respondents, 26 percent said "my collections are part of my family and culture" and 42 percent said "I enjoy surrounding myself with beautiful things."
The majority of investors collected gold, precious metals and fine art . Only 51 percent of those surveyed have had their collections appraised, while 44 percent had not insured their collections.
Eight of 10 collectors intend to leave their collection to heirs, but few had educated their heirs on how to manage, appraise or sell the collection, according to the report. Just 35 percent of the heirs surveyed were interested in keeping the collection, according to the report, which noted that heirs often keep pieces out of guilt.
Nearly half of collectors admitted they had regrets on overpaying for a purchase. Four out of five collectors said that if they needed money for an emergency, they would rather sell assets in their portfolio than part with a piece from their collection.
Most collectors spent over 20 years accumulating their collections and about 22 percent spent more on their collection than on retirement.
The report was derived from surveys of 2,475 investors with at least $1 million in investable assets, including 608 with at least $5 million.