Art as an investment

Art is considered a strong investment due to its low correlation with traditional asset classes like stocks and bonds, offering a hedge against market volatility. Historical data shows that art prices tend to be less affected by economic downturns. For example, during the 2008 financial crisis, the All Art Index by Art Market Research rose, while the S&P 500 suffered significant losses. Although the art market saw a slight dip in 2009, it quickly rebounded by 2011, while the S&P 500 took until 2013 to recover.

This resilience is one reason why high-net-worth individuals increasingly view art as a way to diversify portfolios and protect wealth during economic uncertainty.