INVESTING IN ART
- Why do investment experts at JPMorgan Chase say that investing in art is considered an "investment in passion"?
- Are there mutual funds that allow investors to diversify their portfolios and participate in the world of art investing?
- Why do experts at JPMorgan Chase feel that art as an investment may offer good, uncorrelated returns over a long term?
- Why is it said that the art market is not transparent?
Why do investment experts at JPMorgan Chase say that investing in art is considered an "investment in passion"?
JPMorgan Chase experts assert that when you invest in art, it is an investment in passion because, along with the return you might get on the investment, it allows you to benefit because of the "aesthetic utility" of what you are collecting.
Are there mutual funds that allow investors to diversify their portfolios and participate in the world of art investing?
JPMorgan Chase advises clients that over 40 funds invest approximately $700 million in various art-related investment vehicles, including the outright purchase of collectible art. The trouble with art mutual funds is that they generally have very high minimum initial investments, some starting as high as $250,000.
Why do experts at JPMorgan Chase feel that art as an investment may offer good, uncorrelated returns over a long term?
Experts at JPMorgan Chase believe art may prove to be a good, uncorrelated, long-term investment because wealth created recently in such places as China, Russia, and the Mideast has increased the number of participants in the art market, ensuring there will be an ever-increasing market for art trading and investment. And for very costly works of art, collectors globally are now paying record amounts.
Why is it said that the art market is not transparent?
Many experts agree that the art market is not transparent because most people are unaware of where to buy or sell fine art, since many art transactions happen privately be-
Why is art a relatively bad investment?
Art collecting and investing is a relatively bad form of investing because the markets are illiquid, idiosyncratic, cost a considerable amount to enter, and are not transparent.
tween rather secretive buyers and sellers. Most former sales prices are seldom reported by auction houses, since they do not have to report sales prices. And the long-term nature of the investment may not allow for a known history of pricing on the art itself, since it may take decades before a particular piece is ever bought and sold.
