Works of art have always been collected for their inherent
beauty, but many people also see them as potential assets to
include in their investment portfolios.
What’s the Market for
Art Collecting?
Art increasingly accounts for a larger proportion of individual wealth. Art in wealth portfolios is estimated at $1.5 trillion.
A Look at the 10,000 Most Valuable Artworks*
What’s the Market for
Art Collecting?
Art increasingly accounts for a larger proportion of individual wealth. Art in wealth portfolios is estimated at $1.5 trillion.
A Look at the 10,000 Most Valuable Artworks*
*As of Dec. 31, 2014
Sources:
Deloitte and ArtTactic's "Art & Finance Report 2014"
Skate's Top 10,000
Who’s Collecting What?
Just what does the average art collector look like?
59YEARS Average age
Who’s Collecting What?
Just what does the average art collector look like?
59YEARS
Sources:
Larry's List Art Collector Report 2014
AXA ART's "Collecting in the Digital Age
International Collectors Survey"
Sources:
Larry's List Art Collector Report 2014
AXA ART's "Collecting in the Digital Age International Collectors Survey"
Top Four Art or Collectible Items
Paintings
Works on Paper
Sculptures
Photography
Source:
AXA ART's "Collecting in the Digital Age International Collectors Survey"
Why Do They Collect?
While just 3% of collectors buy art for purely investment purposes, 76% purchase for collecting purposes but with an investment view. Art professionals say their clients collect art for a number of reasons.
Motivations for Purchasing by Art Professionals
Emotional Value 
Social Value 
Luxury Good
Personal Diversification 
Investment Returns
Inflation Hedge 
Safe Haven
Emotional Value Social Value
Luxury Good Personal Diversification
Investment Returns Inflation Hedge
Safe Haven
Source:
Deloitte and ArtTactic's
"Art & Finance Report 2014"
Source:
Deloitte and ArtTactic's "Art & Finance Report 2014"
Key Takeaways
“The aim of art is to represent not the outward appearance of things, but their inward significance,” Aristotle said. Today, art also can have significance in an investment portfolio.
Art and collectibles increasingly account for a larger proportion of individual wealth, and as a result, many wealth managers look at art as a potential strategic asset.
Although large gains in value for works of art often receive attention in the press, new collectors should not expect to see major returns, especially in the near-term. As you begin to collect, think of art as personal property, something you purchase to enjoy as a part of your daily life, regardless of market fluctuations.
The views, opinions and investment information expressed are those of the individuals noted herein, do not necessarily represent the views of Northern Trust or any other person in the Northern Trust organization and are subject to change based on market or other conditions. The material is provided for informational purposes only and should not be construed as investment, tax or legal advice or a recommendation to buy or sell a security. Northern Trust disclaims any responsibility to update such views. Northern Trust does not guarantee that the information supplied is accurate, complete or timely and does not make any warranties with regard to the results obtained from its use. Northern Trust does not guarantee the suitability or potential value of any particular investment or information source. You should consult your investment, tax, legal and accounting professionals before taking any action. Past performance is not indicative of future results.
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