It is no longer true that art is only for connoisseurs of art and artists as it’s not a truth anymore that the global markets are just for the professional traders. Now with HB Swiss everyone can trade like the well-educated suit-and-tie traders while wearing their pajamas at home. With the blending and integration of many fields, we now have doctors pursuing their passion for art; financial analysts having their own art exhibitions, lawyers studying art courses and many such integrated approaches.

Along with this integration is the burgeoning field of art and finance. Combining the essence of these diverse two fields, art trading, and finance is a booming sector that caters to the financial and artistic needs of individuals.

Art trading and finance

Art can be an investment tool. Combining the worlds of art and finance, art trading simply helps you to have the best of both worlds. When ventured into in the right manner, with a good background of both the fields of art and finance, art trading can be a good investment tool.

Should you invest in art?

Investment in art is a good proposition. Without any reduction in the expected returns, art reduces the risk in an investment portfolio. One should treat art as an independent asset allocation. Here are some benefits of owning artworks, by investing in them.

  • It is a great tool to preserve wealth for the family and the heirs.
  • It has a long-term yield.
  • Investment in art can protect against future inflation or even currency devaluation.
  • Pieces of art are easily portable and can be safely stored as well as insured.
  • Based on data available, art has outperformed all other asset classes in the past.
  • Many institution seekers are seeking non-correlated returns on capital, in the field of fine art.

Art can be considered as an asset class which is very stable, trustworthy and durable. It is also a sector where the fluctuations of the equity market are not felt to a great extent. Going by the increasing number of people who are art buyers, art certainly, makes for a sound investment. A majority of the art buyers treat their art acquisitions as investments. There also has been a considerable boost to the number of art galleries and museums, generating a huge demand for art and fine art in the recent past.

Conclusion

Looking back, the past 30 years have witnessed immense changes in all the sectors. Along with the booming finance and real estate markets, there has been a rapid growth in the global art market. These three markets have sort of seen a simultaneous expansion. There has been an increased emphasis on profits and liquidity in the markets. With this, the art market too has blossomed, because of the good influx of money into it.

Art has now become a good investment proposition, with investors and speculators treating art as a good asset class. The latest trends show this emergence of a great financial fine art market. The environment is now favorable than in the past with a supportive approach to the materialization of this transformational change.

With increasing globalization and wealth generation, art is now the preferred medium to trade in as it has become an attractive financial investment asset.

Alessandro Villa: Should Art Be Considered a Sound Investment?