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Art

Why invest in art?

Discover the charm of investing in art! We offer a unique opportunity for investments that bring both financial returns and aesthetic satisfaction. Join us on the journey to a rich and inspiring portfolio with an artistic touch!

ART AS STORE OF WEALTH

“The two greatest stores of wealth internationally today include Contemporary Art…and I don’t mean that as a joke, I mean that as a serious asset class, and the other store of wealth today is apartments in Manhattan, Vancouver, and London.” – Larry Fink (BlackRock)

Recent articles listed fine art among the best bets for 2022 according to top investors:

Jim Rogers (Quantum Fund/Soros Fund Management) chose silver, copper, agriculture, and fine art

Jeremy Grantham (Grantham, Mayo, & van Otterloo) noted fine art as an inflation hedge

Ray Dalio (Bridgewater Associates) picked fine art, gold, and Bitcoin 

30% of millennial collectors have over 30% of their wealth held in art – UBS/Art Basel Report

Allocation of wealth into art.

The global value of art is expected to grow by 53% by 2026.

Art market growth: According to UBS, the art market recorded $50.1 billion in global sales in 2020. 86% of asset managers recommend offering art services to clients, according to Masterworks.

Global wealth increase: More than 1% of all adults worldwide are millionaires (USD) for the first time in history, according to a 2020 Credit Suisse report, with their combined wealth increasing nearly fourfold over a 20-year period.

Museum growth: By the end of 2020, there were 5,788 museums in China seeking high-end works of art for their collections. According to the Economist and ChinaDaily, between 2016 and 2020, an average of 1 new museum opened every 2 days in China, and this trend continues worldwide.

More investors are collecting: The latest UBS/Art Basel report shows that more collectors are using art as an alternative asset: 61% of HNW collectors surveyed had more than 10% of their portfolio invested in art.

A shortage

There is a limited number of images of the most sought-after fashion artists. For example, there are only 800 Monet paintings in private ownership that could ever come up for sale, and these will eventually end up in museum collections, further limiting supply.

Tangibility/portability

Many HNWs in volatile regions prefer to invest in art and other tangible assets to mitigate currency and/or political risk.

Inflation protection

Art has historically performed very well as a hedge against inflation.
Inflation in the US is at its highest level in 30 years.

Return on investment

Art has historically outperformed the S&P 500, see the charts below for additional comparisons to gold and the housing market over the past 20 years.

“Increase in household net worth in 2020 resulted in more than 5 million additional millionaires worldwide compared to 2019 and 24% more individuals whose wealth exceeds US$50 million, according to the Credit Suisse Global Wealth Report 2021. This should to strengthen demand for all types of assets, especially stores of value as investors worry about diversification in the face of erosion of value from inflation.”
– Dr. Nannette Hechler-Fayd'herbe of Credit Suisse