Art as an Alternative Investment Asset

22 Pages Posted: 26 Mar 2008  

Raya Mamarbachi

University of Reading - Henley Business School

Marc Day

University of Reading - Henley Business School

Giampiero Favato

Kingston University

Abstract

The paper constitutes a discussion of the trend around the rise of art as an alternative investment. With financial markets in turmoil, art as an alternative asset class is being incorporated into portfolios in the interest of diversification. Art's low correlation with the equities market and desirable risk and reward ratio, as price appreciation defies all logic, makes it an attractive investment.

The volatility, irrationality and illiquidity of the art market make it hard to compare to more conventional investments. The paper will look at how investors are treating art as an asset class and how art compares to more traditional assets such as equities and bonds.

Keywords: art, fund, investment, class, returns, volatility, risk, economics

JEL Classification: G11, G12, L82

Suggested Citation

Mamarbachi, Raya and Day, Marc and Favato, Giampiero, Art as an Alternative Investment Asset. Available at SSRN: https://ssrn.com/abstract=1112630 or http://dx.doi.org/10.2139/ssrn.1112630

Raya Mamarbachi

University of Reading - Henley Business School ( email )

Greenlands
Henley-on-Thames
Oxfordshire RG9 3AU, England
United Kingdom

Marc Day

University of Reading - Henley Business School ( email )

Greenlands
Henley-on-Thames
Oxfordshire RG9 3AU, England
United Kingdom

Giampiero Favato (Contact Author)

Kingston University ( email )

Kingston Hill
Kingston upon Thames
Surrey KT2 7LB
United Kingdom

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