"Deloitte's annual Art & Finance report lays out the stakes: nearly $31 trillion will shift from roughly 1.2 million wealthy individuals with net worths above $5 million by 2035, with ultra-high net worth individuals (defined as those with $30 million-plus in assets) accounting for a dominant $19.84 trillion of that sum. Art and collectibles represent 5% of this conservatively. This means that nearly $1 trillion in art could change hands, or about $100 billion annually."
"He said that being able to monetize an asset is very important and explained that such unusual collections pose a particular challenge to a wealth manager. From a global bank's perspective, Hofmann added, it's harder to value objects in the more niche art collectibles market for credit or insurance purposes, because there isn't much or any transactional history that can help produce a valuation."
Nearly $31 trillion will shift from roughly 1.2 million wealthy individuals with net worths above $5 million by 2035, with ultra-high net worth individuals ($30 million-plus) accounting for $19.84 trillion. Art and collectibles represent about 5% of assets, implying nearly $1 trillion in art could change hands—roughly $100 billion annually. Disorganized holdings or niche art investments complicate wealth management and estate planning. Unusual collections such as dinosaur skeletons pose valuation and liquidity challenges because of limited transactional history, impairing credit, insurance and collateral monetization. Deloitte Private serves nearly 9,000 clients across family offices, people-owned businesses, high-net-worth individuals, private equity and startups.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]