Categories Financial asset, Investment

Art as a financial asset

Art can be part of investment portfolio diversification. Big investors treat investments in art as if it were a financial asset using auction data dating back to 1815, although surrounded by a certain opacity. These data show a profitability similar to other risky assets, with periods of economic stability in which sales rise.

72% of investors invest in art by combining passion and investment opportunities for their wealth protection and value generation. Art contributes to the 22% of global investment assets equivalent to B$45 distributed 49% in Europe, 35% in Americas and 16% in Asia.

The art performs better in periods of high inflation or rising inflation than other financial assets as you can see below in the analysis made between 1973 and 2012:

In addition, the art market is an investment asset with less correlation with other financial assets and therefore less susceptible to fluctuations and economic cycles: 

Mei Moses Art index has been, until its acquisition by Sotheby’s in October 2016, the most accurate index in the valuation of the art. This index analyzed the data only of artworks that had been acquired by several clients and therefore could identify general trends of the evolution of the price of the art market since its creation in 2000.

Discuss Article

*