Art has long been considered an investment that offers aesthetic pleasure with the potential for appreciation in value. Only recently has it been viewed through the lens of modern portfolio theory and considered as an alternative investment in a diversified portfolio of assets. Art offers a capital return uncorrelated with other asset classes, and it is an investment that offers many unique benefi
ts to those who own it. Up until recently, Art collecting was typically a hobby, a passion. Most collectors did not also view themselves as investors; they did not lose sleep if they concentrated their portfolios on a single artist or school or if they bought a work before considering its long-term value. They bought what they liked and tried not to overpay. Things have changed dramatically because, today, fine Art investors are making the work’s potential future return part of their decision. As a result, Art as investment is now accepted in both the artistic and financial worlds, and Art investors and collectors have begun to search for independent Art advisors with backgrounds in global finance. They want professionals without conflicts of interest with gallery owners or artists. These advisors will negotiate prices on their behalf and will often represent them at major auctions.
