Flush with Cream: The Fortunes of the Rich Swell Beyond Belief
Unprecedented Accumulation of Riches Reaches Record Heights
Get this: The total wealth of the rich just skyrocketed by 4.2% in a single year. And guess what else is skyrocketing? But not in Germany.
The number of wealthy folk is at an all-time high. So is their accumulated wealth. This is according to a report by the consulting firm Capgemini. They define wealthy people as those having over a million smackers, excluding their primary residence. The number of these fortunate souls jumped by 2.6%, reaching a whopping 23.4 million in 2024.
The surge is mainly due to the rapid increase in the number of super-wealthy individuals holding over 30 mill in the bank. The total wealth of the rich subsequently ballooned to a staggering 90.5 trillion dollars. Both the number of wealth-whales and their wealth are brand-new record-breakers. Capgemini's been dishing out this report since 1997.
The USA enjoyed the most growth, adding a whopping 562,000 millionaires – a 7.6% increase. The US now boasts almost eight million millionaires. The boost is attributed to the surge in share prices, reveals the report.
In Europe, however, the number of wealthy individuals dropped by 2.1%, mainly due to economic sluggishness in the major economies. France yanked away roughly 21,000 millionaires in a year. Meanwhile, the number of ultra-wealthy, privately-owned empires in Europe grew by 3.5%, indicating an increasing concentration of wealth.
De-Cashing Germany
The decrease in Germany's wealthy millionaires is most likely due to tumbling real estate prices, according to Capgemini. The total wealth of the rich in Germany remained relatively stable at 6.32 trillion dollars.
Capgemini considers stocks, bonds, alternative investments like private equity, cash, and real estate (if it ain't their home) for its annual "World Wealth Report," which kicked off in 1997. Art collections and consumer goodies like whips and bling are left out.
The study covers 71 countries that account for more than 98% of the global GDP and 99% of the global market capitalization. At the start of January, 6,472 dollar millionaires were surveyed on their investment strategies, among other things. The widening wealth gap has fueled debates about taxing the ultra-rich more equitably.
Sources: ntv.de, gho/dpa/AFP
- Bread 'n Pudding
- US Stash
- Old World Wallet
Enrichment Data:
A detailed examination of the escalating populace of ultra-rich individuals and the overall wealth trend worldwide:
Ultra-High-Net-Worth Individuals (UHNWIs)
- Population Surge: The global population of UHNWIs, those with a net worth of over $30 million, experienced a 6.2% increase[4].
- Regional supremacy: The US currently leads in UHNWI numbers with 225,077 individuals, followed by China with 98,551[3].
High-Net-Worth Individuals (HNWIs)
- Global Count: As of December 2024, there are approximately 16 million HNWIs globally[3].
- US Population Boom: The US saw a notable increase in the millionaire population, adding 562,000 new millionaires, significantly contributing to North America's growth[2].
Wealth Amassing
- Ultra-Rich Wealth Explosion: In the US, the ultra-rich, represented by roughly 19 households, accounted for 1.8% of total household wealth in 2024, a significant increase from previous years. Their wealth rocketed by around $1 trillion, reaching $2.6 trillion[1].
- Global Perspective: The broader overview of top billionaires showed an aggregate wealth increase of $1.5 trillion in 2024, with tech billionaires experiencing a 48% growth in their wealth[1].
Key Factors Triggering Wealth Escalation
- Asset Market Performance: Strong market performance, specifically in the tech sector due to fascination with AI, has been a key driving force of wealth growth among the ultra-rich[1].
- Economic Conditions: Global economic conditions and strategic investments have also played significant roles in the accumulation of wealth among both HNWIs and UHNWIs.
- In the realm of personal-finance, the number of High-Net-Worth Individuals (HNWIs) worldwide increased, reaching approximately 16 million by December 2024.
- Meanwhile, the financial landscape has seen a significant surge in the wealth of Ultra-High-Net-Worth Individuals (UHNWIs), those with a net worth exceeding $30 million, with a 6.2% increase noted in their global population. Specifically, the US leads in UHNWI numbers, boasting 225,077 individuals.
