Create Investment Portfolio of Art, Gems, Jewels, Collectibles

Other assets such as art, gems, jewels, collectible articles, are also, as we have seen, part of an investment portfolio, but require sophisticated and knowledgeable investors, besides having many more restrictions, are expensive to support and need different care than any other type of asset. Generally, legacies passed from generation to generation, and many times managed by trustees or specialized executors.

In order to chart the difference between an index in works of art, the Sotheby’s Index, and the New York stock market index Standard & Poor’s 500, the annual return of the Sotheby’s between the years 1975 – 1990 was an average of 15.4% per year while the S&P 500 had a 13.9% annual fluctuation in average.

Ultimately, it is very different to measure the art and jewelry market behavior, although due to the deep and extended recession that burdens America, it has become a seller market. It is common to read in the papers that “foreign investors” purchase all kinds of paintings and sculptures (preferably European), antiques, Chinese and French porcelain, golden Swiss watches, and diamonds, amongst others.