Art investing is a growing market that allows you to combine your love of the arts with a hedge against inflation. According to the 2022 Global Art Market Report from Art Basel and USB, the global art market reached $65.1 billion in aggregate sales in 2021, up 29% from 2020².
Art plays several roles within an investor's portfolio. It is a unique asset class with a low correlation to stocks, bonds and other traditional investments. When stock prices dip, art tends to hold its value. As a tangible asset, art can be a good hedge against inflation².
There are various ways to invest in art, from purchasing individual works to participating in art funds or investing in art-related stocks. The most traditional way to invest in art is to acquire individual pieces from galleries, dealers or auction houses⁴.
However, investing in art has its share of risks and drawbacks. One of the main negatives is the lack of liquidity. If you need to access cash or liquidate your investment of physical artwork, you'll need to sell it through an art gallery, auction house or private art collector².
