The unique and rare beauty of fine art is what lends to its intrinsic value and a luxury market-leading 12-month value appreciation of 21 per cent*.
In select cases, the value of a piece of art or a collection is shaped by esoteric factors and trends, and follows a value trajectory independent from, and potentially surpassing, the larger economy when compared to the world markets and other benchmarks. This cements art’s value as a potential hedge against inflation and market volatility.
Thus, the cultivation of a collection presents a reasonable opportunity for the diversification of one’s overall investment portfolio.
It is worth remembering, however, that art is a relatively illiquid asset class with high transaction costs, making collateralised lending an attractive option for investors seeking alternative means of quickly monetising their collection without liquidation.