![]() ![]() This makes art a potentially useful hedge against market volatility. ![]() According to Citi, art has one of the lowest correlations to the stock market. Historically, fine art does well during times of economic uncertainty. Traditionally, people turned to traditional assets like gold or real estate to keep inflation from eroding their wealth.īut Bank of America’s chief investment strategist believes art could offer a high level of protection from inflation.Īs you can see below, contemporary art’s appreciation jumps to 13.5% when inflation is above 3%. We’re currently seeing inflation around 5% - still well above the Federal Reserve’s 2% target. It’s no wonder 85% of wealth managers believe art has a place in their wealth management offerings. Especially considering the economic boom we experienced over that same period. You don’t even need to take my word for it look at the experts.Ĭiti reports that contemporary art prices appreciated by 12.9% annually on average. And while those numbers are amazing, this is all a part of a larger trend. You don’t have to be an art expert to understand how incredible that is. That’s an increase of more than 1,400% from its original value. Last May, that same painting sold for $103,400,000. And before them, the Rockefellers amassed the world’s most valuable art collection ever sold-a staggering $835M.Īnd while most people think art is nothing more than painting on a canvas, the reality is … it could be one of history’s finest investments.Īccording to JP Morgan, art is a “powerful financial asset.”įor example, Picasso’s painting Marie-Thérèse, originally sold for $6,800,000 in 1997. Jeff Bezos, Bill Gates, and Oprah Winfrey have built collections valued in the hundreds of millions. After all, art has been the bedrock in the portfolios of America’s wealthiest individuals. The “0.1% of the 0.1%” have used art to grow their fortunes and increase their status for centuries. Sounds crazy, right? In reality, it couldn’t be more obvious. This may shock you, but this alternative asset is actually art. It opened up access to a slew of new alternative investments including this one. And while this particular alternative asset was previously off-limits to 99% of investors, physicians have gotten access to this exclusive investment thanks to a little-known law called the JOBS Act. ![]()
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