How Gauteng’s ‘old money’ spend their riches

The Gauteng elite, the province’s old money, are shunning cryptocurrency for physical assets like fine art and exotic cars to reliably secure their massive wealth today.

According to the newly released wealth report, older high-net-worth individuals in South Africa’s’ premiere province remain highly guarded. These seasoned investors prefer understandable, tangible assets over the extreme volatility of modern digital currencies.

Gauteng old money favour fine art and classic cars

Standard Bank’s regional head for Wealth and Investment in Gauteng, Eddie Masibi, notes older clients avoid confusing digital assets.

“I don’t see a lot of our clients in crypto. Maybe that has to do with their age because many of our clients are seasoned, 60 and above, and may not understand crypto,” Masibi explained in The Psyche of Africa’s Wealthiest.

Instead of digital tokens, these wealthy individuals prefer to invest heavily in extensive art collections. One unnamed client currently boasts a massive private collection of over 500 paintings, according to the report. Classic and exotic cars are another highly preferred alternative asset class for the Gauteng’s wealthiest residents.

These seasoned individuals often buy and flip high-end vehicles for a substantial profit before reinvesting that capital elsewhere. They prefer dealing with tangible luxury items that they can see and understand over speculative virtual assets.

Commercial property as a generational anchor

Megan Lappin is the head of specialised lending at Standard Bank Wealth and Investment. She explains in the report that commercial real estate acts as a primary vehicle for intergenerational wealth transfer. This reliable sector is currently experiencing renewed strength across the entire country.

The ultra-rich aggressively acquire commercial warehouses, large office blocks, and small community shopping centres. This deliberate strategy effectively diversifies financial risk away from core businesses and secures steady income streams for their future heirs.

Education is the ultimate generational hedge

Beyond physical property, elite education acts as the ultimate generational hedge against future wealth erosion. First-generation wealth builders spend heavily on elite private schooling and costly international university degrees.

Securing a top education is considered a vital generational insurance policy. Wealthy families view global education as the most effective way to prevent their massive fortunes from simply vanishing over successive generations.