Art investing goes beyond finding the perfect watercolor to hang in your dining room. Art can occupy an important space in your portfolio, serving as a hedge against inflation, adding diversification and reducing your portfolio’s volatility.
Unfortunately, many investors assume they’re locked out of the art marketplace, considering art to be an investment for the ultrawealthy. As a result, most individual investors don’t own art as an alternative asset class.
Additionally, the onset of the coronavirus pandemic presented a challenge for the art market, with global sales of artwork and antiques in 2020 totaling just $50 billion, a 22% decrease from the previous year, according to the Art Basel and UBS Art Market Report.
“Art as an asset class is typically underinvested in because investors have limited access to the highest-quality works,” says Cynthia Sachs, CEO and chief investment officer at Athena Art Finance Corp.
While most investors don’t have millions of dollars for a Claude Monet painting, there are now opportunities for them to allocate funds to this unique asset class. And while 2020 was a difficult year for the traditional art market, online sales reached a record $12.4 billion, double that in 2019.
With the growing art market and proliferation of platforms that are providing a means of entry to this investment, you may be curious about how to navigate the market dynamics of this alternative asset class.
Here’s what you need to know about investing in art:
—...
Read Full Story: https://wtop.com/news/2021/08/how-to-invest-in-art/
Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.