Exploring art as an investment: How private banking can assist family offices in expanding their portfolios
As family offices look for more options to diversify their portfolios, the concept of art as an alternative asset class has become increasingly attractive. Art has a great potential for appreciation and hedging against economic downturns, but like with any asset class, investment requires expertise and an understanding of the art market. Here's what family offices should know about investing in art and how private banks can assist them.
family office art investment

What you need to know

  • Art investment has become an attractive alternative investment avenue for family offices looking to diversify their portfolios due to the potential for appreciation over time and the opportunity for asset diversification.
  • The banking industry can provide professional guidance to clients looking to invest in art, leveraging their expertise in investment management, finance, and wealth management.
  • Banks can offer access to private art investment funds, managed by professional art investment managers, as well as digital platforms to facilitate art transactions, providing clients with a seamless and efficient art investment experience.
Art Published on Simple April 19, 2023

Art has long been associated with luxury, culture and beauty, but it has also increasingly become a viable long-term investment option, particularly for family offices looking to diversify their portfolios. Art investment has become an attractive alternative investment avenue, attracting investors with the potential for significant returns and asset diversification. The banking industry, with its expertise in investment management, finance and wealth management, has taken note of this trend and can provide professional guidance to clients looking to invest in art.

Art as an investment instrument

One of the most significant advantages of investing in art is the potential for appreciation over time. While the value of stocks, bonds and real estate can fluctuate wildly, art has consistently appreciated over the past few decades. According to the Art Market Report 2022 by Art Basel and UBS, the global art market reached a total value of over USD 65 billion in 2022, up by 30% from 2020, despite the pandemic and global economic downturn.

About the Authors

Dr. Umur Caglar

Dr. Umur Caglar

Wealth management

Umur Caglar is a wealth manager with extensive experience in private banking and investment advisory.

Connect with Dr. Umur Caglar

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