FUTURE OF TANGIBLE ASSETS: LUXURY COLLECTIBLES

Posted on in Editorial by Sonja
 

 

 

Examples of popular luxury collectibles in the tangible asset market include: antique furniture, watches, ceramics, jewellery, wine, and fine art - each dedicated with their own specialized departments in auction houses across the world. But are these luxury collectibles the future of the tangible asset market?

Numerous art market reports have noted on the ‘cooling’ of the art market - with a 5% dip by volume of sales between 2016 to 2017. However, dealer sales have increased by 3% during the same period. Furthermore, between 2006 and 2016, growth in the value of sales has increased by 73%, regardless of the varying performance of different art market sectors.

 

Statistics from online sales over the past few years show great potential for growth in the tangible asset market. Online sales increased by 4% YoY despite a generally declining art market. Art Basel and UBS’ The Art Market Report also notes that online sales have been a great way to reach new and a broader range of clientele - 67% of online sales generated by galleries in 2016 were from new clients.

It is difficult to say if each luxury collectible as a future in the tangible asset market, as tastes change over time. On one end of the spectrum, jewelery and watches are timeless, showing a constant demand for these assets. On the other end, collectibles such as antique furniture and wine have lost their popularity over time.

 

There is certainly a future in the tangible asset market - but with a decline in sales from traditional avenues, perhaps there will be a shift to and growth in the online marketplace?

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