Wealth Insights
A guide to investing in art

Article 6 min read Published October 16, 2025

Fine art can bring a splash of color to your portfolio—and your legacy.

Whether it’s for the pure joy of ownership or to pursue an intellectual interest, collecting luxury items is a favorite pursuit of those with high net worth. But there is a standout among coveted objects: Art was the best-performing luxury investment in 2024, with prices rising 11% year-over-year, according to Knight Frank’s Luxury Investment Index.

While art can appreciate over time and offers low correlation with traditional markets, it remains an illiquid asset with special tax implications to work around. With the right blend of passion and planning, however, art can be a powerful tool for portfolio diversification.

$2.8 trillion

Globally, the value of ultra-high-net-worth individuals’ art and collectibles is estimated to exceed that amount by 2026.

A strategic investment in culture

Art is a tangible asset that appeals to affluent investors not only for its aesthetic value, but also for the social connections it fosters. Collectors often enjoy displaying their pieces and engaging with others who share their appreciation.

Yet perspectives on art collecting are evolving. A recent ARTnews report showed a significant difference in opinion among generations about whether art collecting is more about emotional connection and desirability than investment value. Around 98% of millennial and Gen Z art collectors consider art assets as part of their investment strategy, versus 56% of all collectors surveyed.

A masterpiece of a legacy

Something American collectors do agree on is that artwork is an important component of their estate, with 78% of those in the ARTnews survey saying that it was important to pass their collection on to heirs. That makes it essential to curate a collection of cherished artwork with the end in mind.

For example, chemist Albert C. Barnes famously turned his passion for art collecting into the Barnes Foundation, a museum and art education institute established in Pennsylvania in 1922 that features paintings by Renoir, Cézanne, Matisse and Picasso. Another pair of famous collectors, civil servants Dorothy and Herbert Vogel, amassed 5,000 pieces of modern art over decades and donated it to galleries in all 50 states and the National Gallery of Art in Washington, which called the Vogel collection “a work of art in itself.”

Individuals with valuable art and collectibles in their estate should consider engaging in a gifting analysis as part of their wealth plan. The analysis can measure the potential impact the gift will have and take into account special tax considerations that apply to the transfer of tangible assets. Your advisor can also coordinate with appraisers and other professionals as part of the estate planning process to ensure a seamless strategy.

Art’s role for the discerning investors of today

Diversification: Art is increasingly viewed as a hedge against inflation and market volatility, and a store of value.

Cultural capital: Collectors value the social and cultural prestige of owning unique or historically significant works.

Speculative potential: Emerging artists represent the possibility of high upside potential for some.

Emotional and aesthetic value: Many investors are also collectors who derive personal satisfaction from owning works of art.

From admirer to collector

Starting an art collection can feel both exciting and intimidating—but today’s market is more accessible than ever, especially for newcomers. Online marketplaces and distance learning programs have made the journey from admirer to collector easier.

Sotheby’s Institute of Art even offers an online course to help novices gain a better understanding of the art world and the process of building a collection. Aspiring collectors can learn how to sharpen their focus and tackle complex issues such as authenticity and the risk of forgeries. Understanding pricing and provenance is critical.

Experts recommend starting out by exploring galleries, online auctions and museums to see what types of art resonate with you. Gallery openings and art fairs can also create opportunities to interact with artists and ask questions about their work.

Once you’ve defined your interests and parameters, the possibilities for building a meaningful collection are endless.

If you’d like support in treating an art collection as an investment or as part of a strategy to transfer wealth, establish legacy assets or offset taxes, talk with your advisor. They can support you in incorporating tangible assets into your overall wealth planning.