HNW Individuals Buy Replica Luxury Goods, Fret About Robbery

Editorial Staff

2 November 2023

Research from UK insurance firm Ecclesiastical Insurance shows that just over half of UK high net worth individuals deliberately buy replica luxury goods to protect genuine possessions from thieves.

The large majority of those who knowingly purchased replicas say that they did so to protect valued collections. This ploy is well known, with celebrity figure Kim Kardashian admitting in 2021 that nearly five years after a robbery at gunpoint she wears “borrowed” and “fake” jewellery, adding, “no expensive items ever come into my home.”

The fieldwork for the study was conducted from 9 to 27 July 2023 amongst 250 UK high net worth individuals with an income of at least £200,000 per annum or liquid assets of at least £1 million. The data showed that HNW individuals collecting paintings are most likely to knowingly buy replicas . This is notable given that over three quarters of them say they have invested in paintings, the second most popular collection type.

The findings come at a time when, for a variety of reasons, crime in certain cities around the world – such as London and New York – has risen. As the Kardashian episode shows, stories of robberies and burglaries of the super-rich add to fears about wearing expensive jewellery in public, for example. In London, in April 2021, the boxer Amir Khan had a £70,000 watch stolen at gunpoint. And footballer Raheem Sterling was the victim of an armed robbery in which burglars stole £300,000 in jewellery and watches in December 2022.

This news service’s editor recently mused on the problems of theft in major cities, and the sort of advice wealth managers should give clients.

This rise of replica buying comes at a time of increased burglaries. According to the Office for National Statistics, there were 75,265 robbery offences and 1,724,361 theft offences reported to the police in England and Wales between March 2022 to March 2023. This is an increase of 8,937 reported robberies on the previous year and 25,111 more than the 20-year-low in the year between 2014 and 2015.

Handbags and jewels
The next most common knowing replica purchases are handbags . Almost a quarter of jewellery collectors, 78 per cent of HNW individuals, have deliberately bought replicas. Meanwhile, over a quarter of watch collectors, three quarters of high net worth individuals, have knowingly purchased a replica.

“We would encourage those who are not regularly getting their collections valued to do so. While it is a terrible experience to have your valuables stolen or damaged, the purpose of insurance is, partly, to recoup the value of what you have lost,” Dr James Lindow, underwriting director for art and private clients at Ecclesiastical, said. “Up-to-date insurance, including annual valuations, combined with robust security measures, is the most effective means of protecting your valuables. This gives you peace of mind and the freedom to leave items at home or, where appropriate, wear or carry them.”

Many HNW individuals know what their collections are worth. More than half have at least one collection appraised annually, with almost a quarter having a collection appraised more often than once per year. The rise of social media may have a role to play in the rise of burglaries and thefts. Almost three quarters of HNW people like to share their purchases with their friends and family on social media, which increases the risk of theft.