Why invest in the

art market

Portfolio Diversification

Art typically has low correlation with traditional financial markets, helping investors diversify beyond stocks and bonds. During periods of market volatility or inflation, quality artworks may retain or increase their value.

Art has consistently outperformed other asset classes including the safe haven of blue chip equities. A strong art portfolio (of the right pieces) would have likely out-performed the S&P500 and the FTSE100 by 100-200% over a 20 year period.

Even if you take a contrarian view, against a wildly unpredictable market, investment in art is a strong hedge.

Potential for Appreciation

Certain artists and art movements have shown impressive long-term value growth. For example, works by well-established modern and contemporary artists have outperformed many traditional investments over extended periods.

Tangible Asset Value

Unlike some investments, art is a physical asset you can enjoy while it potentially appreciates. This "emotional dividend" provides both aesthetic pleasure and potential financial returns.

However, art investment comes with important considerations:

  • High transaction costs (gallery markups, auction fees, insurance)

  • Illiquidity compared to stocks or bonds

  • Need for specialized knowledge or advisors

  • Authentication and provenance concerns

  • Storage, security, and insurance expenses

The most successful art investors typically combine genuine passion for collecting with market understanding. Working with reputable advisors like Marsham Art Advisory can help navigate these complexities and identify opportunities aligned with both investment goals and personal taste.