CORONATION LINKS ART COLLECTING TO INVESTMENT

Coronation has highlighted art collecting as a potential investment strategy, encouraging investors to consider artworks as part of broader wealth management and diversification plans.

The financial institution said the art market offers opportunities for investors who understand the value, history and potential long-term returns associated with selected works.

It noted that collecting art goes beyond cultural appreciation, as carefully selected pieces can form part of an individual’s wider investment portfolio.

Coronation stressed the importance of proper research and expert guidance when considering art as an investment, particularly because the value of artworks can be influenced by factors such as the artist’s reputation, provenance, rarity and market demand.

The institution also encouraged potential collectors to understand the risks involved and consider their investment objectives before committing funds to the asset class.

According to Coronation, art can provide diversification because its performance may not always move in the same direction as traditional financial assets.

The institution said Nigeria’s growing creative industry and increasing interest in African art could create more opportunities for collectors and investors.

It also highlighted the importance of developing stronger structures around the African art market to improve transparency, valuation and access to information.

Coronation encouraged investors to view art collecting as a long-term strategy rather than a quick route to profit.

It said professional advice could help collectors make informed decisions and properly manage the risks associated with buying and selling artworks.

The institution maintained that art could play a role in wealth preservation while also allowing investors to participate in the growth of the creative economy.

The development reflects growing interest in alternative assets as investors explore different ways to diversify and preserve wealth.