Art objects,collectibles and antiques are costly and illiquid investments. These investment have illiquid markets , because the market are characterized by low volumes and high values.Investments in art and antiques are large value investments which cannot be easily converted to cash at fair price.Moreove〽r, one really has to know the market of these products to be able to buy and sell these products.
Investment in art and antiques is being made for reasons which are personal and emotional, generally deriving pleasure.Art and antiques have a very low correlation with other asset classes and hence , have diversification benefits . fine art and other antiques have a very low subjective value. hence, there may be no exact measure for determination of the same . This asset class comes with very low level of liquidity.
Advantages
- Tangibles assets
- Low-correlation to the stock market
- Growing rarity
- Tax differences
- Personal satisfaction
- Wealth transfer
Disadvantages
- Illiquid investments
- Unorganized market
- Maintenance
- Wear and tear
- Counterfeits and fraud
- Markup
- Low pace growth
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