Strategic Collecting

Fueled by unsurpassed economic growth in the region and a new generation of buyers collecting their cultural heritage, Latin American art has quickly become an alternative asset class for savvy buyers seeking diversification in their investment portfolios.

While matters of taste and future demand are difficult to ascertain, our clients have greatly benefited from receiving impartial advice having purchased artworks whose market has exponentially increased in the last decade.  

Why Latin American Art? Unprecedented Growth Headed Towards Peak Levels

In May 2012, the Latin American auction sales at Christie’s, Sotheby’s and Phillips de Pury reached $48.4m, the highest auction total for this segment since the peak of the art market in 2008. May 2012 results were 31% higher than November 2011 and 51.5% more than the total achieved 12 months ago.

In 2003 the aggregate figure of Latin American sales in New York (May and Nov.) was just over $19m compared to $88m in 2012, an increase of more than 4x.

According to ArtTactic, the leading art market analysis firm based in London, Latin America“ is the region that most collectors expect to do well in 2013, with 59% of respondents believing that this market will go up in the next six months. Higher sales and prices are likely to encourage HNWIs in the region to start turning to art, not only as a collectible, but also as an asset class.” ArtTactic, Art Market Outlook, 2013.

Arguments for Including Art in Traditional Wealth Management

> Current concerns over high government indebtedness
> Loose monetary policy
> Better performance in an inflationary environment than equities.
Credit Suisse, “Art Investment: A Screaming Success?” Research Alert, Global Research Private Banking, Zurich, July 2012.

 

To find out more about the Latin American art market contact us for a complimentary consultation.

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