Source: LinkedIn.
The recent 2024 Bank of America survey reveals a striking trend: over 80% of wealthy Millennials and Gen Z are passionate about collecting art, a stark contrast to the 34% interest among those older than 43. This shift signals a broader skepticism towards traditional investments, as younger generations find it increasingly challenging to achieve above-average returns through stocks and bonds alone.
In today’s newsletter, we dive into why the current art market is a buyer’s paradise, with softening valuations and favorable buying opportunities. We’ll explore how younger collectors are not just investing in art for its financial value, but also for its aesthetic and experiential appeal. Plus, discover why these savvy investors are six times more likely to leverage inherited art for loans, embracing nontraditional assets shaped by their unique economic experiences.
- A Bank of America survey of 1,007 high-net-worth individuals in the US, each with at least $3 million in assets, reveals that over 80% of wealthy Millennials and Gen Z are interested in collecting art. This contrasts sharply with the 34% interest among those older than 43.
- Younger people continue to be skeptical of traditional investments: it is no longer possible to achieve above average investment returns by investing solely in traditional stocks and bonds.
- The current art market is described as a buyer’s market due to softening valuations from higher interest rates. Wealthy collectors are more inclined to purchase valuable new works rather than sell, capitalising on favorable buying opportunities.
- Younger collectors are particularly drawn to the aesthetic and experiential aspects of art, reflecting a broader trend towards lifestyle and aspirational investments. Additionally, they are six times more likely than older generations to take out loans against inherited art, indicating a preference for nontraditional assets shaped by their experiences with economic recessions. This trend is further supported by initiatives like Art Basel’s new social venue aimed at engaging younger buyers.
Whether you want to start your art journey, or you’re a seasoned collector, the Maddox Team are on hand to help you with whatever your art needs are. Please explore our New Arrivals here or explore our Current Exhibitions page here.