Veblen goods such as luxury bags, luxury watches and collectible art and cars may appreciate over time.
Their desirability rises as their price goes up, and these achieve investment status.
In other words, good art can be a hedge against bad economic times.
LIGHTFIELD STUDIOS - stock.adobe.com
Unfortunately, outside the artist community, that is not how most people think and make buying decisions.
Most people just think the economy is bad and that artwork can wait.
Hopefully, this will benefit not just the traditional stock and bond markets, but also the art market.
Hence it can help the art market, though we do not really know by how much.
The information provided here is not investment, tax or financial advice.
You should consult with a licensed professional for advice concerning your specific situation.
