Rich people own increasingly expensive works of art and do not hang them on the wall

Rich people own increasingly expensive works of art and do not hang them on the wall
Visitors to an exhibition in Dubai view a work by Picasso that was sold at auction this year for 130 million euros

Noos News

  • Jedi Paul

    Economics Editor

  • Jedi Paul

    Economics Editor

The value of the art collection owned by wealthy people around the world is almost equal to the wealth of all Dutch people combined. This is clear from A a report From business services provider Deloitte. Some of this art disappears permanently in storage sheds. The temperature and humidity are ideal there, but it is also a way to avoid taxes.

Last year, the value of the art and collectibles collection of high-net-worth individuals was estimated at €2 trillion (2 trillion). In comparison: everyone’s savings, homes, stocks, and everything else they own Dutch families Together they were worth just 0.45 trillion that year.

In 2016, the group of wealthy individuals was still worth €1.5 trillion.

Art is a popular investment object among wealthy people. The report shows that wealth advisors are increasingly encouraging wealthy people to invest their money in works of art. In 2014, only half of advisors thought investments in art should be part of asset management. 90 percent of advisors now consider art and collectibles such as rare wines, classic cars or jewelry to be important components.

Deloitte researchers also point out that it is becoming increasingly common to buy a share in a work of art, rather than the entire work. Rich young people in particular are very fond of this type of investment.

The value of the art trade reached $68 billion in 2022. The value of the luxury collectibles trade reached $363 billion, nearly doubling the value of this market in two years.

Hundreds of millions

At the beginning of this month, another Picasso painting was sold for more than 130 million euros. The sale was part of an auction of the art collection of millionaire Emily Fisher Landau, who died this year. It is not known who the buyer is. Crook, who also owns a Picasso painting, says: “Buying this type of painting has become a global game for billionaires.” “I was lucky because I started collecting art 30 years ago. Now I won’t be able to afford my own collection anymore.”

Kreuk saw, among other things, that the Qataris and Saudis were also becoming interested in European high art. “In the last 20 years, a lot of people have gone to Qatar to fill the museums there,” Crook says. “The Saudis are doing the same thing now.”

In 2017, one payment Saudi prince For example, $450 million Salvator Mundi. The painting attributed to Leonardo da Vinci has become the most expensive work of art in the world.

Not on the wall

“These types of paintings are too expensive to hang on the wall at home. Insurance companies don’t want that,” says Crook, who also stores part of his collection in Freeport. “Young artists are on the wall, and I keep more expensive works in storage.”

Kreuk knows that some art business owners also use warehouses to avoid all kinds of costs. “For example, you can avoid import duties.” It can also be a way to avoid VAT or wealth tax. Or as Icelandic economist Odni Helgadóttir wrote: Luxury warehouses have become part of the global tax evasion ecosystem.

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