US Trust has just released its 2018 Insights on Wealth report and survey. This annual report always has some good insight into collecting fine art and art as an asset. Follow the source link below for a summary of the report as well as the full 100+ page report. Below are some of the fine art findings, including the movement away from the past habit of collecting for enjoyment to a more financial return/art as an asset outlook.
I am still reviewing the full report and locating the fine art related material, and will pass along any additional interesting findings.
US Trust reports
Source: US TrustAN ACTIVE ART MARKET: DRIVEN BY FINANCIALLY DRIVEN COLLECTORS
While the primary reason for collecting art is for the love of art and aesthetic enjoyment of it, a new breed of financially driven, mostly younger collectors, are attuned to how art behaves as a financial asset. They are actively buying, selling and gifting their art.
• Seventy-eight percent of all collectors and 97 percent of millennial collectors say they are likely to buy a piece of art this year, and 46 percent are likely to sell.
• Four in 10 collectors acquired art online this year—a 43 percent increase from the previous year. While millennials are the most prolific online buyers (78 percent), the biggest increase was driven by women collectors (36 percent, up from 16 percent last year).
• Whereas the vast majority of art collectors previously haven’t considered art as part of their wealth planning strategies, that’s changing. Forty-two percent of all collectors, and 72 percent of millennial collectors, now incorporate art into their wealth structuring and wealth planning, up from 29 percent who were doing so a year ago.
• Nearly one-quarter (23 percent) of collectors have accessed capital by borrowing against existing art as collateral. Another 20 percent say they have plans to do so.
• Nearly three times more collectors borrowed against existing art to finance new art acquisitions in the past year (21 percent in 2018 versus 7 percent in 2017).
• Twenty-six percent of art collectors have previously loaned their art to an art gallery or museum, and another 29 percent say they plan to lend pieces of their collection in the future.
• Art plays a prominent role in charitable giving among HNW collectors, a strategy that comes with significant, highly complex tax implications. One in five say they have donated one or more pieces of their art to a nonprofit organization for which art is not a part of its mission, while 16 percent have donated pieces to nonprofits with a focus on art.
• Thirty-seven percent of art collectors say they already have gifted pieces of their art to family members, and half, including 57 percent of baby boomers, plan to pass their collection on to family heirs.
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