Art As Investment
Let's talk about asset allocation.
Asset allocation depends on your investment horizon. We typically work with our client to invest over periods of 5 to 10 years. And as part of that asset allocation, you have to consider liquidity. There are, however, certain categories of investments which we advocate allocating money to that are not that liquid, namely areas like art and collectibles. A portfolio designed to build wealth should have something like 10% to 20% in art and collectibles. Americans are not as experienced with art and collectibles as Europeans are, but art has some unique attributes to it. Besides the fact that there is a limited supply once an artist is dead, the other great advantage to art is that it is portable.
Scott Minerd. CIO, Guggenheim Partners
Barron's 2010