Karolina Blasiak has international experience of more than 10 years in the art industry, having worked in several European countries and the United States. She assists in the global art advisory activities for individual and corporate clients of Rosemont International.
Technology, changes in regulations, and impact investing – particularly to have beneficial social results – are key trends that will shape the art and finance market in 2020. The interest in art and collectibles, as part of a holistic wealth management strategy, continues.
The most qualified clientele is now looking for alternative investments to those represented by most traditional securities management.
In the previous decade, these were the top issues faced by the art market:
- Financial markets were subject to uncontrollable fluctuations due to economic and political changes.
- Equity markets were risky and suffered from market volatility even when companies were profitable.
- Interest rates were low, and bonds and monetary products offered poor remuneration.
All of the above are virtual instruments whose value can be zeroed in difficult situations.
Sophisticated investors have already invested in all types of financial instruments available. Whereas collectors nowadays are looking for diversification, decorrelation and, above all, for “passion investments” that they can appreciate personally.
Worldwide, High Net Worth Individuals (HNWI) are interested in tangible precious goods that – similar to gold – can be considered safe because they react differently from financial products.
This new decade for HNWIs will be highlighted by the quest for more sophisticated alternative assets of great value, including investments in multiple collections of art. These will have an inherent and tailor-made risk-performance ratio characterised by high operational transparency and technology penetrating the art market, finance and culture.
We will observe the rise of more alternative funds allowing investors to acquire tangible assets that offer maximum flexibility in investment policy. At the same time, these will offer the investor an opportunity to benefit from favourable fiscal and technology solutions.
In 2020, we will be experiencing more collaborative and unique strategies in acquiring global art collections. The promoting and marketing of these in the world’s finest galleries and museums, private art foundations and within the private bank sector will also be on the rise.
We can emphatically say that innovative investment opportunity in art works with potential growth in value remains unexplored.