Most of fine art collectors in the US are driven by passion rather than profit, and prefer to leave their collections to their heirs rather than selling them, according to a report by UBS Wealth Management Americas.
The report, titled ‘For the love of art,’ revealed that 71% of the investors collecting art pieces are driven by an appreciation for beauty, 54% by passion, and 32% by a wish to support and nurture artists. One quarter of the investors said they believe their collections are priceless.
Nearly two-third (65%) of the investors said they never sold any piece from their collection, and 41% said they never had their collection appraised.
High majority (87%) of the collectors said they plan to pass on their collection to their heirs instead of reaping yields. Despite this intent, only 57% of the collectors were found to have educated their heirs about collecting.
The study further unveiled that majority (88%) of collectors do not have advisers to make purchases, but instead seek advice from alternative sources. For guiding them on fine art purchases, 62% of the collectors were found relying on galleries, 60% on online resources, 50% on museums and 44% on magazines.
UBS Americas head of private wealth management and ultra high net worth John Mathews said: “Collecting is a passion that we share with many of our clients who are developing alternative legacies through their cultural pursuits. Collectors don’t apply the same principles to buying art that they would to a typical investment portfolio of stocks and bonds.
“It is important, however, to institute management structures to ensure their legacy remains protected, correctly valued and insured.”