12 Words and Phrases Used By the World’s Wealthiest People
When you’re part of an elite club (like being ultra-rich), certain words and phrases take on a whole new meaning. These code words, which relate to exclusive lifestyles, investments, and business dealings, are usually reserved for conversations among those in the know. They also reflect a world of privilege and exclusivity, where deals are made behind closed doors, and luxury is a given.
But what exactly are these secret words of the wealthy? Here’s a closer look at some of them.
1. Hammer Price
This term refers to the final price at which an item is sold at an auction, excluding additional fees. Those familiar with high-end auctions, especially for fine art and collectibles, are particularly accustomed to this term. The hammer symbolizes the auctioneer’s gavel, which marks the official sale of the item.
2. Graff
Used to describe a world-renowned jeweler, Graff is famous for its rare diamonds and bespoke pieces. Among the ultra-rich, the term is used not just for jewelers but also as a status symbol that represents exquisite, high-end craftsmanship. Owning a Graff piece is often seen as a statement of wealth and prestige.
3. Stud Fee
This refers to the fee paid to the owner of a high-quality racehorse used for breeding purposes. Among those in the horse racing and equestrian world, this is a key term, as it represents the financial potential of future racing champions. Stud fees can also run well into the millions, showcasing the lucrative nature of elite equestrian sports.
4. Family Office
If you think this refers to your home office setup, think again. For the ultra-rich, a family office is a private advisory firm that manages the investments, estates, and money affairs of a single family. This team of advisors is usually available day and night (heavy on the “Succession” vibes) and grants the family access to a discreet, tailored approach to maintaining and growing generational wealth.
5. Off-Market
This refers to deals or transactions that occur privately, without being publicly advertised by a stock market. In real estate or business dealings, these off-market deals offer an air of exclusivity by ensuring that only a select few in the know can participate. The world’s wealthiest often pursue these opportunities to avoid public scrutiny and keep a low profile.
6. White Glove Service
The term refers to an elevated level of service that involves meticulous attention to even the smallest details, typically associated with luxury brands or exclusive events. Though the term traces back to a time when handlers wore white gloves to avoid damaging precious goods, it now extends to concierge and delivery services that cater to every need of the elite.
7. Veblen Goods
Veblen goods are items that become more lucrative and expensive over time. Luxury items like rare watches, designer handbags, and artwork are examples, where their high price and age add to their appeal and prestige. Since the ultra-wealthy see these items as vintage status symbols, they can be highly sought after and command steep sums.
8. Prime Brokerage
This refers to a tailored host of services provided by investment banks to hedge funds and other large investors. Prime brokerage gives access to early trading, securities lending, and risk management. Though the term might not be as widely used by your average investor, it is key for those managing portfolios in high-finance circles.
9. Trophy Asset
As the name suggests, this refers to highly prestigious and rare assets like luxury penthouses, private jets and yachts, and iconic art pieces that serve more as status symbols than functional items. Owning a trophy asset shows not just monetary wealth, but also cultural or social influence.
10. Single Malt
In the world of fine spirits, a single malt whiskey is produced from malted barley at a single distillery, and is known for its superior quality, taste, and mouthfeel. Among wealthy connoisseurs, single malts are not just a beverage choice but a symbol of refined taste. Collecting and savoring rare bottles is a hobby for the affluent.
11. Carry
In private equity or hedge funds, “carry” typically refers to carried interest, which is a share of the profits earned by fund managers. This performance-based compensation motivates managers to consistently deliver higher returns for their investors. For the ultra-rich, it’s a key financial term tied to their investments in such funds.
12. Whisper
Unlike the whispered sweet nothings us poor folks are used to, “whisper” means something entirely different for the ultra-rich. In elite circles, a whisper listing or deal refers to discreet, off-the-record information that is shared privately, often before it becomes public knowledge. It’s a way for the wealthy to stay ahead of the game by gaining access to lucrative investment opportunities and business deals in real estate and other industries.