Investment in art reaches £846m

Investment in the art market has reached $1.3bn (£846m), according to a report from Deloitte on art and finance. Buyers worldwide are increasingly acquiring collectibles from an investment viewpoint, which will most likely increase the need and demand for professional and wealth management services relating to the management and planning, preservation, leverage and enhancement of these assets, the report added.

Alternative investing has become popular as investors look to diversify risks and gain higher yields, according to a feature on investing in passions in Money Management’s November issue.

Investors tend to prefer these assets because their intrinsic value cannot be eroded by inflation fluctuations. Others look at them as a means to diversify or to fulfil a personal passion.

“The most dramatic trend over the past decade has been the emergence of the (former) third world consumer,” Philip Staveley, partner at Amphora Portfolio Management Wine Investment, said. “As emerging economies develop and produce millionaires and billionaires, these newly rich aspire towards western luxury products, whether this be Rolex watches, Lamborghinis, or indeed, fine wine,” he continued. Analysts have said that this starts as a lifestyle but individuals then look at these collectibles as a form of investment.

While collectibles can include everything from fine wine to artwork, comic books to jewellery and classic cars among other things, assets such as wine and art see growing popularity.