Is art a good investment?

Daniel Gross writes:

…the data shows that art performs well as an asset over time.

He offers plenty of evidence but I am skeptical.  Studies of auction prices are usually biased toward the winners; the losers never go on the block again or are sold quietly at a loss through dealers.  Many pieces turn out to be fakes.  The placement costs in the dealer market can be higher than those at Sotheby’s.  Storage and insurance costs for masterpieces are considerable.  Art is so much fun it can’t earn the same rate of return as equity, otherwise no one would buy stocks.


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