The migration of the super-wealthy to art as an asset class as well as for lifestyle reasons is gaining new momentum, with spending likely to hit $2.7 trillion by 2026.
This forecast is made in the annual Deloitte Art & Finance report, which warns that art specialists at a number of private banks don’t get sufficient senior management support to exploit this opportunity.
At the same time, the report authors, Adriano Picinati di Torcello, the director at Deloitte Luxembourg and global art and finance coordinator, and Anders Petterson, the managing director of the research firm ArtTactic, observed an "increasing convergence between collectors, art professionals, and wealth managers on the role of art in a wealth service offering, as well as a convergence of different stakeholder initiatives when it comes to improving art market transparency.”
The forecast for growth in the art sector, including projections on the rising number of super-wealthy individuals around the world over the next nine years, compares with the $1.62 trillion spent in 2016.
The Deloitte report found that 85 percent of wealth managers believe that the move towards a holistic wealth management model is the strongest argument for including art and collectibles in a wealth management service range.
A further 64 percent of wealth managers questioned said they were actively offering services related to art.
Fifty-five percent of wealth managers indicated that clients were increasingly asking their private bankers and wealth managers for help with art-related issues, up from 48 percent the previous year.
However, 51 percent of wealth managers indicated that lack of senior internal support in art services was a major challenge, up from 26 percent last year.
“This could suggest that as interest in art....is gaining momentum, there is a lack of leadership report for these initiatives,” the report concluded.
This year, the survey queried 69 private banks, including 27 family offices, as well as 155 art professionals and 107 international collectors. Additional data came from auction houses, art funds, and art trusts.
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