Milon Goh, co-founder of Art Again, a Singapore-based secondary marketplace for artworks, said art became formalised as an asset class after economists in the 1970s began analysing art price data to assess whether it could perform like stocks or bonds.
This led to the creation of art price indices, such as the Mei Moses Art Index, which tracks sectors including Impressionist, Post-War and Contemporary art. These benchmarks allow investors to measure performance and volatility.
Such data has helped position art as an asset class with measurable risk and return, enabling collectors to approach it more like a financial portfolio.
Not convinced? Global art sales were at an all-time high in 2022 at US$67.8 billion (S$86.72 billion) according to The Art Market 2023 report, an annual study that analyses the global art market.
An art collection can potentially serve as both a tangible asset and a statement of identity when displayed.
To protect these assets, Chua Chingyi, co-founder of Art Again, advised owners to avoid displaying their art in direct sunlight or above heat sources. “UV exposure can cause irreversible pigment fading,” she said.
Gently dust them with a soft, dry cloth or soft, natural-hair brush regularly and “conduct quarterly condition checks for discoloration, mould, loose paint or frame damage”, Chua added.
And similar to luxury goods, “retain original packaging — crates, boxes, and wrapping materials, which can add value and facilitate future transport” if you plan to resell it in the future, said Chua.