With multi-million dollar auction records being broken at Christie's and Sotheby's regularly, it's no secret that art is increasingly being used as an alternative investment. Collectors are now purchasing the latest Picasso to not only show it off at their next dinner party, but also to save for their children's children's college education.
A recent Bloomberg Business article discusses Citigroup's newest strategy to win wealth management clients: by sending the children of existing clients to art collecting training camp. As the NFL kicks off their own training camps this week, Citi Private Bank is trying to keep the assets of wealthy families under Citi's management as they are transferred to the next generation. Attendees of the Citi training camp learned how to value works of art, including analyzing the quality and provenance of a piece. Other banks, including Deutsche Bank, UBS, and Credit Suisse run similar programs around the world.
Regardless of whether your collection will include the latest record-setting contemporary painting, you can be sure that art is progressively gaining a larger part of the savvy investor's overall strategy. Read the Bloomberg story here.