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If you are looking for diversification outside of stocks and bonds, you’ll be hard-pressed to find better returns than those in certain segments of rare tangible assets.
According to Raconteur, a current affairs publishing house, in the 10-year period between 2005 and 2015, fine art prices grew 252%. Better yet, the asset class posted average annual growth of 15% over 40 years.
Rare stamps grew 255%… and had average annual growth of 10% over 40 years.
These are impressive returns, to be sure. But, like in the stock market, the winners and losers can be hard to identify.
And to succeed at art and collectible investing, you need to stay educated and stick to a disciplined investing strategy.
Below you’ll find The Oxford Club’s seven steps to investing in art and collectibles:
- Love it!
- Buy the best you can afford.
- Consider CAP: Condition, Authenticity and Provenance
- Provenance is the proven documented history of an art piece’s ownership and sales.
Expert Tip:Certificates of authenticity from a dealer can be flimsy proof.
- Be selective and patient.
- Understand the basics of the sector you like. And have a go-to expert in that sector who can help you avoid forgeries.
Expert Tip:Sotheby’s guarantees against forgeries.
- Think international. Something with universal appeal is more valuable than something interesting to only one small group or country.
- Have realistic expectations. Art and collectibles are not short-term investments.
As always, The Oxford Club encourages all Members to speak with a qualified advisor before they invest in any tangible assets.
To help you find one, the Club has compiled a list of trusted advisors with an array of specialties… first edition books, fine art, stamps, coins, precious metals and more. To see the list of The Oxford Club’s Pillar One Advisors, click here.