ART VS. Gold

Traditionally, gold typified the most reliable storage of wealth. Today, wealth managers are trading in gold bars for Picassos. According to Laurence D. Fink, head of the BlackRock, world’s biggest
asset management firm, gold’s role as a store of wealth has been usurped by real estate in big cities and contemporary art.

Thanks to research in finance, economics and within the art trade itself, methods have been developed to measure and value art and to estimate its returns as an investment. According to the 2016 Hiscox Annual Art Report, the art market demonstrated record prices, superior relative returns, attractive risk characteristics, and interest from major banks and institutional investors. These all helped to describe art as a desirable asset class for short and long-term wealth storage, despite economic conditions. The chart below illustrates the art market’s impressive independence from the S&P 500.

Courtesy of Deloitte

In common with other financial assets, the value of works of art increase over time, as their use does not depend on a depreciating function, like putting miles on a car, making art both a store of value and a source of capital gain.

This evolving art market is now within the radar of the mainstream financial community. Arthena’s investment platform solved the inefficiencies that previously held back the nontransparent market. Start investing with Arthena. We offer the opportunity to access the alternative asset class with the highest barrier to entry and strongest historical returns. Become a user today to gain access to our funds, the exciting art world news, and invitations to some of the most exclusive events happening in today’s art scene. Click here to request membership or email info@arthena.com