Why small savers should consider art as an investment
The article argues that contemporary art, often seen as an elite asset, could be a viable investment for small savers like a hypothetical Italian public employee with €1,700 monthly net income and inherited savings. Emerging artists' works cost between €1,000 and €20,000, comparable to typical small investments. Art is counter-cyclical and offers risk diversification, yet cultural barriers and low liquidity deter small investors. The author advocates for policies that promote cultural investment over mere consumption, which could expand the market, benefit galleries, and increase artists' circulation. Currently, tax treatment equates art sales with retail goods, hindering such expansion. The piece is by Stefano Monti, partner at Monti&Taft, and was published on Artribune.
Key facts
- Small savers like a public employee with €1,700 net monthly income could invest in contemporary art.
- Works by emerging artists cost between €1,000 and €20,000.
- Art is a counter-cyclical asset that provides risk diversification.
- Large investment portfolios increasingly allocate to alternative assets including art.
- Cultural barriers prevent small savers from considering art as investment.
- Art has low liquidity compared to traditional savings products.
- The article proposes policies to boost cultural demand as investment, not just consumption.
- Taxation treats art sold in galleries like retail goods (shoes, bags, etc.).
Entities
Institutions
- Monti&Taft
- Artribune
Locations
- Italy