Playbook #022: Art Investing
Art investing is not just for the yacht club crowd. New technology lets you buy a share of art from famous artists like Picasso, Warhol, or Monet. You can also invest in art indirectly and make money without being an art expert. Art can be a stable investment with significant tax advantages.
🖼️ The Big Picture
Multimillion-dollar artwork has long been a cornerstone of investing for the ultra-wealthy.
That's why investing in art often conjures images of classic paintings selling for millions at auctions to billionaires for displaying in their mansions. And it's also true that up until recently, the world of investing in artwork has only been accessible to high net worth (HNW) individuals.
But art investing has many more opportunities than you might think, especially as technology enables shared, fractional ownership and crowdfunding.
And the great news is that you don't have to be sophisticated or even know anything about art to cash in on indirect investment strategies such as art financing deals.
The returns can be phenomenal for certain works of art. But the biggest draw for serious investors is:
- Investment-grade artwork's steady appreciation over the years
- The lifestyle factor — you can enjoy the art (and impress others) by displaying the artwork in your home or business while it appreciates
- The numerous ways to blend in major tax-saving strategies with art investing
Investing in artwork will rarely, if ever, be the main investment vehicle for anyone. However, it can be a good way to diversify a minority position in any portfolio if it fits your Investor DNA — especially since art investments are not highly correlated to the volatility of global financial markets.
