Art As The Ultimate Alternative Asset

There’s a quiet but impactful revolution in the world of wealth—new and seasoned investors in India are including fine art and collectibles such as rare books, watches, silverware, antiquities, jewellery, and limited-edition prints in their portfolios. While the most significant share for auctions worldwide still constitutes paintings, many in the business are realising the potential of including a diverse range of collectibles within the fold.

A SILENT DIVERSIFICATION
In 2025, fine art performed at a high level, achieving many records, most notably for the Progressive Artists’ Group. According to the Deloitte-ArtTactic 2025 report, luxury collectibles is one of the fastest-growing segments in the auction world. It’s growing by 2 to 6 per cent year-on-year. Another 2025 report by Art Basel and UBS highlighted the same, and most auction houses are seeing a growth of 20 to 25 per cent in the category.

RETHINK THE ‘HEDGE’
Analysts and experts agree that art can be seen as an ‘inflation hedge’, as works of art appreciate in value over time, getting recognised not only for the financial value but also for the artist’s provenance, the rarity of the work, the emotional resonance of the artwork, and the artist’s journey, among other aspects. That said, there’s no denying that art continues to attract attention—in India, textile art, for instance, is gaining prominence among collectors, as is tribal art.

Art is also an asset class given that many are passing on their prized collections within the family to future generations. To illustrate: the college-going daughter of a celebrity recently got an F.N. Souza paperwork from the 1960s as a birthday gift from her father, in a bid to start building a collection. Ditto for an earlier auction where a phone bidder bought Gogi Saroj Pal’s 1980s work to gift it to his mother on her birthday.

Read the full story in the premiere issue of LuxeTrope, on stands now.