2021 by Deloitte Art & Finance report. What's important?
Deloitte Art & Finance is famous for positioning itself in between art and business, culture, and finance sectors. The goal of the report, as Deloitte states, is to inspire and enhance the dialogue between the field stakeholders, encourage new models around finance and sustainable investment in art and culture, and amplify the role and importance of culture. The initiative was established in 2008 and the first report was presented in 2011 in Miami, Florida. This year’s report is particularly interesting as the times happened to be exceptionally uncertain due to the Covid-19 pandemic and other social and global challenges such as the all-overarching climate crisis.
Let’s look at the highlights from this year’s report that may be relevant for you:
- Today, art is an essential part of wealth management. And the good news is that young investors are picking up on this claim, as we see an increasing number of people under 40 acquiring art as part of their investment portfolio. Roberta Ghilardi, Deloitte Private Sustainability Senior Consultant, put forward data from Christie’s and Sotheby’s auctions: 32% of new buyers at Christie’s “online-only” auctions were under 38, while at Sotheby’s the number of buyers under 40 was twice as high.
2. Technology is the key driver for change in the art and wealth management sectors. According to Deloitte, the influence of art technology on the development of new art investment models is expected to increase. Younger collectors in particular believe technology to significantly change the art and wealth management industry in the next two to three years.
Since 2019 the interest in fractional art ownership has increased 3 times, especially within the younger art collector’s generation.
3. Blockchain technology has proved itself and is becoming mainstream. Deloitte started running analytical reports about Blockchain in 2020, and their claims about Blockchain’s relevance in the arts are supported by Deloitte’s 2021 Global Blockchain Survey, where the impact of Blockchain technology is very well reflected by the survey results.
76% of respondents believe that digital assets will either become a strong alternative to or replace the fiat currencies in the next 5–10 years.
4. The interest in alternative forms of art ownership is on the rise including fractional art and NFT’s. According to the report, 33% of wealth managers claimed their clients are increasingly interested in non-fungible tokens (NFTs), fractional ownership (29%), art investment funds (25%) as well as the social impact investment in culture (21%).
5. Art is regarded as a value-preserving asset class.
“Our survey results this year clearly show that the art and finance market has come a long way since we launched our first report in 2011. Today, it is not a question of ‘whether’ but ‘how’ art should be integrated into a wealth management offering — and how to deal with the challenges,” states Adriano Picinati di Torcello, Director at Deloitte Luxembourg and Global Deloitte Art & Finance coordinator.
It is worth mentioning that within the collectibles market (for example, jewelry, watches, sports memorabilia, collectible cars, wine), art accounts for about 75% of the annual transaction value. The dominant share of art in the collectibles market is largely due to the international nature of the art market, the higher demand for the item, and the higher average price per item.
Interested to learn more?
- Consider early access to artadvance. Join for free now: https://www.artadvance.io/
- Find the full report here and stay tuned for further report updates.
- Useful link for a deeper dig: https://www2.deloitte.com/lu/en/pages/art-finance/articles/technology-trends-new-generation-collectors-art-finance-market.html
By Kotryna Tribusinaite, 2021
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