Adar Poonawalla, CEO, Serum Institute of India (SII), started collecting art two decades ago

On February 5, AstaGuru announced that Adar Poonawalla, CEO of the Serum Institute of India (SII) and an art connoisseur, had bought a 20 percent stake in the online auction house. Poonawalla and AstaGuru declined to reveal the amount of investment, or the total valuation of the auction house. However, Forbes India did manage to get a sense of how this investment will influence AstaGuru’s future, and how that is linked to the new investor’s past.

In an exclusive interview, Poonawalla says he has been passionate about art since childhood, growing up in an environment where art was a significant part of his family’s life. “My family has been collecting art for several years, which naturally nurtured my appreciation for it. Personally, I started collecting art two decades ago and have been an avid enthusiast ever since,” he says.

Poonawalla’s collection includes several works of Indian artists such as SH Raza, MF Husain, Jehangir Sabavala, Raja Ravi Verma and Amrita Sher-Gil. “Their works happen to be some of my favourites,” he says. The international artworks in his collection include Marc Chagall, van Gogh, Salvador Dali, Pierre-Auguste Renoir, Rembrandt and Pablo Picasso.

Explaining his thinking behind this investment, Poonawalla says, “The Indian art market still lacks widespread infrastructural awareness and appreciation across different geographies. Currently, interest in Indian art is concentrated within a niche audience. However, as the market continues to evolve and expand, so will the business opportunities in this sector.”

He adds that AstaGuru has successfully scaled its presence in the art market and significantly grown its market share over the years. “I have closely followed the auction house since its inception, having acquired several artworks through them, and have maintained a long-standing relationship,” he says. Poonawalla’s involvement in the company will primarily be from a strategic perspective, helping shape its future.

Adar Poonawalla, CEO, Serum Institute of India (SII), started collecting art two decades ago

On February 5, AstaGuru announced that Adar Poonawalla, CEO of the Serum Institute of India (SII) and an art connoisseur, had bought a 20 percent stake in the online auction house. Poonawalla and AstaGuru declined to reveal the amount of investment, or the total valuation of the auction house. However, Forbes India did manage to get a sense of how this investment will influence AstaGuru’s future, and how that is linked to the new investor’s past.

In an exclusive interview, Poonawalla says he has been passionate about art since childhood, growing up in an environment where art was a significant part of his family’s life. “My family has been collecting art for several years, which naturally nurtured my appreciation for it. Personally, I started collecting art two decades ago and have been an avid enthusiast ever since,” he says.

Poonawalla’s collection includes several works of Indian artists such as SH Raza, MF Husain, Jehangir Sabavala, Raja Ravi Verma and Amrita Sher-Gil. “Their works happen to be some of my favourites,” he says. The international artworks in his collection include Marc Chagall, van Gogh, Salvador Dali, Pierre-Auguste Renoir, Rembrandt and Pablo Picasso.

Explaining his thinking behind this investment, Poonawalla says, “The Indian art market still lacks widespread infrastructural awareness and appreciation across different geographies. Currently, interest in Indian art is concentrated within a niche audience. However, as the market continues to evolve and expand, so will the business opportunities in this sector.”

He adds that AstaGuru has successfully scaled its presence in the art market and significantly grown its market share over the years. “I have closely followed the auction house since its inception, having acquired several artworks through them, and have maintained a long-standing relationship,” he says. Poonawalla’s involvement in the company will primarily be from a strategic perspective, helping shape its future.

CARLSBAD, CA / ACCESS Newswire / March 20, 2025 / The intersection of art and technology continues to yield remarkable innovations-this time, influencing the experience and ownership of fine art. Deal Box, OroBit, and True I/O have partnered to facilitate the fractional ownership and tokenization of an exceptionally rare early Andy Warhol artwork. By leveraging blockchain technology, they’re delivering unprecedented transparency, accessibility, and liquidity to the traditionally exclusive fine art market. This historically significant piece, crafted during Warhol’s formative years, provides a compelling glimpse into the artist’s early creative development, deeply entwined with his personal journey. Rich in provenance and cultural significance, the artwork offers collectors a unique connection to authentic Warhol heritage.

Fractionalizing Iconic Art for Broader Access

Historically, investing in blue-chip art was limited to large institutions, a closed system effectively barring widespread participation. However, leveraging blockchain technology, Deal Box and True I/O have democratized this process. By placing the iconic Warhol artwork within a Special Purpose Vehicle (SPV) and issuing fractional ownership through security tokens to investors, the companies allow a broader audience to invest in high-value art.

Historical Precedents: Warhol’s Art Market Record

Andy Warhol’s art consistently garners extraordinary attention at global auctions, reinforcing its prominence as a valuable investment class. Notably, his iconic 1964 silkscreen painting, “Shot Sage Blue Marilyn,” made headlines in 2022 when it sold for an astounding $195 million at Christie’s in New York, becoming the most expensive 20th-century artwork ever auctioned. Another remarkable sale includes Warhol’s “Silver Car Crash (Double Disaster),” which fetched approximately $105 million in 2013, underscoring Warhol’s enduring appeal and investment potential within the fine art community.

Blending Institutional-Grade Diligence with Cutting-Edge Blockchain Technology

Deal Box, renowned for its robust capital advisory services, structures the SPV and guides the legal compliance framework necessary for fractional ownership offerings. They establish a secure “data room” to safely store and analyze critical financial and legal information, ensuring transparent management and precise investor reporting. Deal Box’s rigorous approach merges the best of traditional capital management with blockchain’s transparency and auditability.

Thomas Carter, Founder and CEO of Deal Box, emphasizes the significance of this milestone: “Tokenizing an iconic Warhol painting marks a transformative shift in the art investment landscape. We’re committed to making these assets accessible with more efficient technology without compromising security, compliance, or investor trust.”

True I/O and OroBit: Innovating Provenance and Tokenization

True I/O stands at the forefront of technology, designing and implementing advanced tokenomics that accurately represent fractional ownership. The company’s proprietary blockchain tracking solutions, enhanced by UCID (Universal Communications Identifier) technology, ensure transparent and verifiable provenance. This tamper-proof record of ownership safeguards investor interests and bolsters the long-term value of the artwork. Additionally, True I/O simplifies user adoption through an innovative Web3 blockchain naming solution.

Simultaneously, OroBit’s cutting-edge Bitcoin Layer 2 infrastructure empowers secure, native-Bitcoin token issuance and efficient asset management. Leveraging Bitcoin’s robust security foundation, OroBit provides unparalleled safety standards, delivering confidence to both institutional investors and retail stakeholders. At the heart of OroBit’s innovation is its proprietary Simple Contract Language (SCL), an intuitive framework designed for executing complex smart contracts securely off-chain. This advanced yet streamlined approach significantly reduces on-chain overhead, enhancing scalability and transaction speed without sacrificing security or decentralization.

“Art investment has traditionally been opaque and illiquid,” explains Warwick Denman, Managing Director at OroBit, a key collaborator. “By using our OroBit Bitcoin Layer 2 framework, we’re enabling secure, transparent, and liquid fractional ownership, fundamentally reshaping how the world invests in valuable art.”

A Model for the Future of Asset Tokenization

Beyond art, this landmark tokenization initiative paves the way for a wide spectrum of real-world assets (RWA) to benefit from blockchain’s inherent transparency and security advantages. Commercial real estate, private securities, and valuable collectibles are just a few asset classes primed for similar fractional investment structures.

The Future is Fractional: Democratizing Art and Beyond

The collaboration between Deal Box and True I/O signals an exciting future in which high-value assets become accessible to a broader investor base without compromising their intrinsic integrity or exclusivity. Powered by secure blockchain frameworks, transparent provenance systems, and institutional-grade financial modelling, fractional ownership of masterpieces like Andy Warhol’s iconic art not only unlocks investment opportunities but also contributes to preserving and appreciating humanity’s most cherished cultural treasures.

About Deal Box

Deal Box merges institutional-grade diligence with blockchain innovation, empowering accredited investors to craft portfolios aligned with their financial ambitions. For more information, visit www.dealbox.vc.

About True I/O

True I/O leads blockchain innovation in asset tracking and management, providing transparency and security unmatched in traditional markets. For details, visit www.trueio.io.

Media Contact Details:

Deal Box
PR@dealbox.io

OroBit
Invest@orobit.ai

SOURCE: Deal Box

View the original press release on ACCESS Newswire

With inflation eating away at the purchasing power of many people, investors are turning to stable, alternative assets to protect and grow their wealth. Rare coins are increasingly becoming an attractive option due to their historical value and potential for appreciation.

Learn More: These 4 Rare Nickels From Over 20 Years Ago Are Worth a Ton Now

Read Next: 4 Easiest Frugal Living Tips Perfect for Beginners in 2025

Whether you’re new to investing or have been in the game for years, here are eight reasons you may want to consider investing in rare coins this year.

Rare coins are hard assets you can liquidate, store or pass down as generational wealth. Unlike stocks, bonds and digital currencies, rare coins give you a sense of security, knowing that your assets aren’t vulnerable to any form of cyber threats.

Find Out: 10 Rare Coins Expected To Soar in Value in the Next Five Years

You’ve probably heard the phrase, “don’t put all your eggs in one basket.” If you’re already invested in stocks, index funds, or exchange-traded funds (ETFs), adding rare coins to your portfolio can help reduce risk. When the stock market is volatile, rare coins may hold or increase in value, lowering your overall risk.

While past performance doesn’t guarantee future results, rare U.S. coins have shown a strong track record of increased value. If you invest in the rare coins that could become rarer in the future, you’ll be sitting on a goldmine, as the appreciation potential is limitless.

Inflation has been a big problem for many people. While it has declined significantly from its peak in 2022, finding ways to fight inflation is the only way to beat it. Hard assets like rare coins are a good hedge against inflation because they tend to hold or appreciate during economic downturns.

Rarity is what makes rare coins a good alternative investment. Once a coin is minted, that’s it. Scarcity makes them rare; the rarer the coin, the more valuable it is. If you acquire rare coins that are in high demand but have a short supply, their value could skyrocket over time.

Some rare coins have commemorated heroes, while others carry a unique history. So, if you value history and art, investing in rare coins can offer both financial reward and a sense of contentment.

In many countries, rare coins are treated as collectibles, which often get more favorable tax treatments than other investments. You’ll only need to pay taxes when you realize profits. However, be sure to check your local tax laws regarding rare coins.

The View From is part of The Asia Pivot, Artnet Pro’s biweekly members-only newsletter that provides mission-critical analysis, insights, and exclusive intelligence on developments in Asia’s art markets, with a focus on business opportunities and challenges. Subscribe here to receive it directly to your inbox.

Hoor Al Qasimi has served as the director of the Sharjah Biennial since 2003 and is the president and director of the Sharjah Art Foundation, which she founded in 2009. She co-curated the sixth Sharjah Biennial (2003) and curated the critically acclaimed 15th Sharjah Biennial (2023). Al Qasimi is the artistic director of the 2025 Aichi Triennale, as the first person from outside Japan to hold the role, and the artistic director of the 2026 Biennale of Sydney.

The 16th Sharjah Biennial is curated by five women curators. I have worked with each of them individually in the past and know their strengths well. I wanted to bring them together to create something meaningful for Sharjah at this moment. It’s wonderful to see them unite diverse voices and perspectives in this edition. If you look at our history, we also have consistently collaborated with many women curators.

The biennial started in 1993, and I got involved and became its director in 2002. We were already doing a lot, but we weren’t calling ourselves a foundation. So, we decided to create an umbrella to bring everything together. The Sharjah Art Foundation was established in 2009, building on the history of cultural collaboration and exchange of the previous editions of this biennial. Then we started doing so many things outside of the biennial. It has helped us because we have a year-round program and need to engage with the community. Continuity and sustainability were important too. This way, our team has gained more experience working with artists across multiple editions of the biennial.

It has grown a lot over the years, and we definitely have more support now. Some of the people working here now used to come as children to attend workshops. We also have more partners for co-commissioning and collaborating on projects, and we’ve gained more sponsors as well.

We’ve also been able to engage more with local artists, especially those who work with the community or specific sites. I’ve always wanted to expand the biennial beyond a single location and bring it into city centers. For me, it’s very important to create projects in different towns and villages.

The Sharjah Biennial is integrated into different university programs here, which is important to me. I feel like this brings something valuable—having all these amazing artists and curators coming in is an incredible educational opportunity, and students should make the most of it. It has truly become a hub for learning and artistic exchange.

With more Gulf regions and countries getting involved with contemporary art, like Saudi Arabia, I think it’s great. I do get annoyed when people see it as a competition. In reality, it’s amazing that more places are establishing their own initiatives. It means young people and children don’t have to travel far—they have access to art in their hometowns. And that’s important. They grow up with it, they get curious, and eventually, they explore beyond their own cities. It only strengthens the region as a whole. I would love for every town to have a biennial because it nurtures people of all ages. Saudi Arabia has always had incredible artists. In the past, many young artists would come to Sharjah because it was nearby, and they could experience the biennial firsthand.

The more biennials there are, the better—it fosters dialogues. Each of us has our own approach; we’re not trying to do the same thing. There are so many artists who need platforms and so many projects that need to happen. We can collaborate, exchange ideas, and showcase different perspectives. There is a real need for more spaces where people can engage with art.

In Sharjah, we are also focused on creating and restoring spaces. Our work happens in phases as budgets allow. We restore and repurpose a lot of old and modern buildings. At this point, I’m working on developing more studio spaces for artists. We already have artist residencies, but I want to expand them to include studios where both visiting and local artists can work together and spark new conversations.

We’ve already established small art centers that offer workshops for all ages, from young children to senior citizens. We’re also in the process of building our library and theater. We just keep moving forward, continuing the work.

For my roles beyond Sharjah, it’s always about site and place. It’s really important to connect with the location, and to bring in my own experience, but also to learn from the team on the ground. For the Aichi Triennale, I wanted to visit as many Japanese artists as possible, meet with people, and listen to the team. It is the same for Sydney. I’ve visited every edition of the biennial since 2012. I know many Australian artists and have worked extensively with different communities, including Aboriginal art centers. It’s such a vast country to navigate, it is challenging, yet crucial.

Ultimately, it’s all about connecting communities and giving space to different voices.

—As told to Cathy Fan

Masterworks is an alternative investing platform for non-accredited investors to diversify their portfolios with contemporary art from famous artists like Banksy, George Condo, and Andy Warhol.

Business Insider compared Masterworks to the best commodity trading platforms and investment platforms. We found it stands out for its access to vetted art investments, which are usually inaccessible to retail investors. However, fees are high and lack transparency.

Pros and Cons

Masterworks Pros

• Artwork vetted through Masterworks’ due diligence process
• Early liquidity through the secondary market
• User-friendly art investment research

Masterworks Cons

• Fine art is a high-risk investment with low liquidity
• High 20% fee on all profits earned
• Website lacks fee transparency
• High $15,000 minimum investment
• Limited to up to 10% in shares per artwork

Open an Account

Compare Masterworks

Masterworks Overview

Masterworks is a global online art investment market offering fractional shares of pre-vetted blue-chip artworks, allowing retail investors to profit from what is usually an area of the market only available to the wealthy. You don’t have to be accredited to use Masterworks.

Blue-chip art is art created by upcoming and well-established artists commonly featured in museums and art galleries. Compared to other art investments, blue-chip art is low-risk. Still, art investments pose more risk than traditional assets like stocks, bonds, and ETFs. Masterworks does not offer NFTs.

You make money on Masterworks by buying shares of artworks that appreciate in value over time. Masterworks sells artworks at a higher price than it buys, dividing the profit among its investors. Since it’s a newer platform, Masterworks has only sold 23 artworks so far. The platform says it is buying new artwork every week.

Most artworks on Masterworks have an annualized return of around 20%, but some have returned upwards of 75%, while others return less than 5%.

Fine art is generally more risky than other types of investments and overall has low liquidity. If you play your cards right, you may be able to sell your assets for a high price. But you’re still at risk of losing most, if not all, of your money. Only folks who are knowledgeable about fine art should invest in it.

Overall, Masterworks is a user-friendly platform that streamlines the art buying and selling process, but fees can be hard to find, and the initial set-up process is a bit convoluted. The investment minimum is $15,000, but some users have reported being able to invest for much less after talking with a representative during the onboarding call.

Masterworks is best for experienced traders who don’t mind the risk and limited liquidity of investing in contemporary fine art. It isn’t the best option for risk-averse investors who want investments with greater liquidity. Also, you’ll need to hold assets for at least three years, and exit fees can be quite high.

You can contact and schedule a call with a Masterworks advisor through email or phone. Customer service hours are 9 a.m. to 6 p.m. ET, Monday through Friday.

Masterworks has a rating of 4.8/5 on the Apple Store and 4.7/5 on Google Play.

Ways to Invest with Masterworks

To sign up with Masterworks, you must request an invitation and then fill out a membership application including your personal information and the size of your liquid investment portfolio. Next, you participate in a one-on-one phone interview with a Masterworks advisor to discuss your goals and financial objectives. They will walk you through your first investment. Afterward, you can invest online on your own.

Although Masterworks has advisor access, advisors don’t actively monitor or manage your investments after the initial onboarding call.

Masterworks Fractional Art Shares

Art on Masterworks is pre-vetted. Less than 3% of the artworks offered from 24,000 analyzed artist markets are accepted on its platform, as artworks must pass through Masterworks’ rigorous diligence process.

The Masterworks research team uses proprietary data to pinpoint the best artist markets and purchase promising works. Artworks are purchased through private sales from private collectors, auction houses, and established galleries.

Featured artists include Andy Warhol, Banksy, Carmen Herrera, George Condo, Elizabeth Peyton, Pablo Picasso, and Liu Ye.

Once purchased, Masterworks files the art pieces with the SEC to securitize them. In other words, it converts artwork into securities anyone can buy. Individual investors can’t hold more than 10% of shares for a specific artwork in their portfolio.

After you buy shares of a specific artwork, you must wait until Masterworks sells the painting (typically three to 10 years) before receiving earnings. Once your shares have been liquefied, the funds will be deposited into your account.

A Masterworks account gives you access to research on contemporary and fine art market investment research and up-to-date market data. Datasets show recent sales, annual returns, and gross artwork appreciation. 

Masterworks Wallet Account

You also have the option to sell shares directly to other US users on the platform’s secondary market. However, you must have a qualifying brokerage account to access fee-free trading on Masterworks’ secondary trading market. You must also wait at least 90 days after purchasing shares before being eligible to start selling. 

Masterworks doesn’t offer a brokerage account directly. Instead, users can open a wallet account provided by Templum Markets to deposit funds and participate in trading on the secondary market. Templum is a multi-asset investment platform that offers automated investing strategies, secondary trading, and data.

A Templum wallet account can also fund purchases on Masterworks’ primary market. 

You may get more liquidity from your assets if you sell early on the secondary market rather than waiting for Masterworks to sell on the primary. However, the secondary trading market is only available for US users. 

Risks to Consider

Masterworks alternative investments come with several unique risks. The platform outlines these in its disclosures:

• Unproven business model: Many of Masterworks’ features are untested. In other words, success isn’t guaranteed. The platform says it may have to auction off artwork if its business model fails.
• Issuers are un-diversified: Investments with single-asset issuers can be risky since you’re investing in a single piece of art. In addition, issuers that offer investments in a collection of different art pieces may still only offer limited access to that particular art market, according to Masterworks.
• Illiquidity: Masterworks issuers typically hold paintings for three to 10 years. However, there’s still a possibility that investors won’t be able to liquidate their shares after the holding period, and there isn’t a guarantee that all shares will ever be tradable. 
• Ability to trade shares: The platform says there isn’t an active public market for those who want to exchange their art shares actively. Masterworks also says such a market may never exist and that those using the resale secondary market might either pay excessive fees to resell shares or may not be able to resell at all.

You can find more information on the risks of investing through Masterworks on its website.

Masterworks Stone Ridge Art Risk Premium Fund (AARTX)

Financial advisors can invest in Masterworks’ Stone Ridge Art Risk Premium Fund (AARTX), which is a curated portfolio of more than 150 artworks from over 50 artists. The underlying value of all the art in the fund is over $600 million.

There is no secondary market for these shares. In the disclosure for the fund, it states that investors should be prepared to hold shares for an indefinite period of time and that there is no assurance that shares will be profitable.

Masterworks Fees

Masterworks charges:

• 20% fee on all profits earned when you sell
• 1.5% annual management fee in the form of equity, which covers security, insurance, and similar costs
• One-time 10% expense allocation fee

To start investing, you’ll need at least $15,000. Shares are in $20 increments. Masterworks’ steep 20% commission can be a significant cut, since fine art liquidity can be low. 

Masterworks Trustworthiness and Security

Masterworks safeguards users’ personal information by regularly employing companywide training. Other security features include industry-standard encryption technology and automated monitoring tools.

All artwork offered by Masterworks is filed with the SEC. The filings for each artwork can be accessed on Masterworks’ website. However, the platform itself isn’t registered or licensed with the SEC.

The artworks Masterworks owns are stored at the Delaware Freeport and UOVO Facrilies, which are fire and waterproof and climate-controlled.

The Better Business Bureau gives Masterworks an A+ rating. BBB ratings range from A+ to F, and Masterworks has received the highest rating. 

Ratings reflect the bureau’s opinion of how well companies interact with customers, but they also take into account factors like the type of business, advertising issues, licensing, and government actions.

Masterworks’ record is clear of any major lawsuits or scandals.

Masterworks Alternatives

Here’s how Masterworks compares to similar alternative investment platforms.

Masterworks vs. Yieldstreet

Masterworks and Yieldstreet both offer investable art pieces from top-performing artists. However, the platforms differ regarding investment options, account options, and fees.

In general, Masterworks should be the go-to for art-focused investors interested in fractional ownership of fine art for long-term art appreciation. Compared to Yieldstreet, Masterworks offers a more comprehensive selection of vetted artworks. Moreover, users can increase liquidity by trading through the secondary market. 

If you want to invest beyond fine art, Yieldstreet is the better platform offering simple portfolio diversification. It offers a range of alternative investment options, including multi-asset class funds, short-term notes, and debt securities. Yieldstreet also offers artwork-backed loans that provide monthly income streams. 

Yieldstreet review

Masterworks vs. Republic

Republic is another alternative investment platform for accredited and non-accredited investors to diversify their portfolio with startups, crypto, real estate, music, and art. Masterworks and Republic are drastically different platforms for specific investment choices, but both provide assets classified as alternative investments.

Masterworks is best for long-term-focused investors who appreciate art, while Republic best suits those who want to invest in up-and-coming startups. Though Republic doesn’t specifically provide art investments, you can still use its platform to invest in startups that specialize in art.

Masterworks: FAQs

Why You Should Trust Us: How We Reviewed Masterworks

Masterworks’ alternative investment platform was reviewed using Business Insider’s rating methodology for investing platforms to examine investment options, ethics, fees, and overall customer experience when reviewing investing platforms. Platforms are given a rating from 1 to 5. 

Investment platforms usually offer multiple assets, trading tools, and other educational resources. Some platforms are better for more advanced investors or active investors, while others may be better for beginners and passive investors. Masterworks was evaluated with a focus on how it performs in each category.

Masterworks Review: Business Insider’s Overall Rating

Tessa Campbell

Investing and Retirement Reporter

Tessa Campbell is an investing and retirement reporter on Business Insider’s personal finance desk. Over two years of personal finance reporting, Tessa has built expertise on a range of financial topics, from the best credit cards to the best retirement savings accounts.ExperienceTessa currently reports on all things investing — deep-diving into complex financial topics,  shedding light on lesser-known investment avenues, and uncovering ways readers can work the system to their advantage.As a personal finance expert in her 20s, Tessa is acutely aware of the impacts time and uncertainty have on your investment decisions. While she curates Business Insider’s guide on the best investment apps, she believes that your financial portfolio does not have to be perfect, it just has to exist. A small investment is better than nothing, and the mistakes you make along the way are a necessary part of the learning process.Expertise: Tessa’s expertise includes:

• Credit cards
• Investing apps
• Retirement savings
• Cryptocurrency
• The stock market
• Retail investing

Education: Tessa graduated from Susquehanna University with a creative writing degree and a psychology minor.When she’s not digging into a financial topic, you’ll find Tessa waist-deep in her second cup of coffee. She currently drinks Kitty Town coffee, which blends her love of coffee with her love for her two cats: Keekee and Dumpling. It was a targeted advertisement, and it worked.

Read more
Read less

Elias Shaya

Compliance and Operations Associate

The prices of art saw the steepest annual decline among luxury investments, dropping by 18.3% in 2024, according to Knight Frank’s ‘The Wealth Report 2025’. The report, released by the global property consultant, revealed that only half of the top 10 passion investments recorded positive growth last year.

Among luxury assets, handbags emerged as the best-performing category, with prices rising 2.8%, followed by jewellery (2.3%), coins (2.1%), watches (1.7%), and classic cars (1.2%).

Collapse of art, wine, and whisky markets

Fine art experienced a sharp decline, reversing the double-digit growth seen in 2023. The fall was even worse than during the COVID-19 pandemic when art prices dropped by 17%.

Fine wine prices also tumbled, down by 9.1%, due to shifting consumption trends. Similarly, rare whisky suffered its second consecutive year of losses, declining by 9%. This decline follows a market peak in mid-2022, with values now 19.3% lower than that period.

Furniture from important designers also saw a dip of 2.8%, while coloured diamonds declined by 2.2%. Knight Frank’s Luxury Investment Index (KFLII) recorded an overall drop of 3.3% in 2024, marking the second consecutive year of negative growth. The report noted that scarcity alone is no longer a guarantee of value appreciation in the luxury collectables market.

Luxury investments

Despite the recent downturn, luxury assets have proven lucrative in the long run. Liam Bailey, Knight Frank’s global head of research, highlighted that a $1 million investment in 2005 tracking KFLII would now be worth $5.4 million. In comparison, the same amount invested in the S&P 500 would have grown to $5 million by the end of 2024.

Handbags, watches and even classic cars made it to a list of top performing luxury investments in 2024, said a Knight Frank report. 

Luxury handbags emerged as the top performer in the year, rising 2.8 per cent over 12 months as of Q4 2024, according to the Knight Frank Luxury Investment Index (KFLII).

On a five-year basis, handbags soared 34 per cent.

“The ultimate classic handbag, the Hermes Birkin in black Togo leather, is now more valuable than ever when sold on the secondary market,” the report noted.

Watches came in fourth, with a 1.7 per cent gain in the past 12 months, according to the index. On a five-year basis, this category enjoyed a 52.7 per cent gain.

The “most surprising” was classic cars, the report said, which grew 1.2 per cent through the year following a “sharp bear market” through 2023 and the first half of 2024.

These findings were revealed in the report on Wednesday (Mar 5), with the luxury index tracking the performance of 10 popular luxury investments, or collectibles.

However, despite financial markets soaring in 2024, the KFLII fell 3.3 per cent for a second year in a row, Knight Frank said. 

However, the report said: “Take the long view and luxury collectibles have delivered for investors. If you had invested US$1 million in 2005 and tracked KFLII, your pot would now be worth US$5.4 million. The same amount invested in the S&P 500 would have been worth US$5 million by the end of 2024.”

Declines in fine art, wine and whisky

The weakest performers were fine art, wine and whisky.

Art was down 18.3 per cent, a steeper drop than the 17 per cent decline experienced during the Covid-19 period. The art market has been undergoing significant structural change. The report noted that while the rise of online marketplaces has given new buyers confidence to enter the market and expanded pre-existing definitions of luxury collectibles, it has also intensified competition for investment. 

Fine wine also took a hit, declining 9.1 per cent, unlike its bull run during the low interest rate period of the pandemic. 

Other than the rise in interest rates, Tom Burchfield, head of market intelligence at Liv-ex, the global fine wine exchange, also noted that the Chinese market has not returned in force. Many traditional fine wine collectors now have enough in their cellars, and the next generation is not yet picking up the slack, he added in the report.

Rare whisky, too, suffered its second poor year with values down 9 per cent, because of the rapid growth in stock in the secondary market.

Why is luxury investment slowing down?

Christine Li, head of research for the Asia-Pacific at Knight Frank, said that the decline in the KFLII reflects a shift in how the wealthy consumes luxury goods. “They increasingly seek more personal and curated experiences as well as cultured expressions of luxury,” she said.

Nicholas Keong, head of residential and private office at Knight Frank Singapore, attributed the drop in the KLFII to the current era of inflation, global uncertainty and unfolding world events. “The appetite for rare collectibles might have taken a breather,” he said.

But he also noted that Singapore is performing well amid this uncertainty and inflation, with 11.2 per cent of the most expensive wines in the world available in the top 20 restaurants in the city-state. The Republic’s hospitality and dining scene also ranked third in the Wealth Report Global Wine Cities Ranking 2025.

High-profile auction sales buck the trend

Though it appeared to be a quiet year for auction houses, some high-profile items captured the spotlight. 

In February, Sotheby’s auctioned off six Air Jordan sneakers worn by basketball legend Michael Jordan during his six NBA championships, fetching US$8 million.

In June, a bidding war at Sotheby’s saw the original cover art for JK Rowling’s Harry Potter and the Philosopher’s Stone, by Thomas Taylor, sell for US$1.9 million, setting a new record for Potter-related memorabilia.

In November, a diamond necklace linked to the downfall of French queen Marie Antoinette was sold for US$4.8 million at Sotheby’s.

Knight Frank’s report points out that the impressive performance of equities, attractive cash yields, and traditional safe havens such as gold might give investors pause. But it also suggests that for many, the “joy of ownership” continues to drive investments in luxury assets, even in uncertain times.

Oklahoma City is home to 47 thriving museums which employ 860 people, earn more than $107 million in revenue each year, and have assets upwards of $835 million. These compelling numbers help to fuel our belief that the arts have the power to help economies thrive, educate and enrich societies, and create greater cultural understanding. Investing in these institutions, like the Oklahoma City Museum of Art (OKCMOA), plays a significant role in driving success within our community and is valuable to sustaining our future growth.

For 80 years, OKCMOA has brought a diverse collection of artworks to our community from all over the world. The Museum serves over 100,000 visitors each year, enriching the lives of Oklahomans and visitors by educating them on historical and cultural events that speak to who we are today.

Art and objects of cultural heritage become vulnerable to the impacts of time, and the conservation of these works calls attention to the rich diversity of the human experience. By taking steps to preserve these works, we can help preserve our shared history and cultural elements for future generations.

Last year, OKCMOA received funding through Bank of America’s Art Conservation Project, a global program providing funding to nonprofit cultural institutions to conserve historically or culturally significant works of art in danger of deterioration. Through the project, OKCMOA was able to restore a historically significant piece – an acrylic painting on canvas, Khufu (1965), by artist Sam Gilliam.

For more than a decade, Bank of America Oklahoma City has supported the arts through partnerships, community programs and offered bank-curated exhibitions from its own corporate art collection. Before Khufu, Bank of America Oklahoma City helped restore Triumph of Washington (1931), by artist Gardner Hale in 2019. In addition, BofA cardholders, through its Museums on Us program, have free access to more than 250 museums and cultural institutions in Oklahoma City and around the U.S. This is what robust partnership looks like, and with the Khufu conservation now complete, the piece will be displayed for the first time in years in OKCMOA’s From the Vault: The 80th Anniversary Exhibition, showcasing pieces from the Museum’s permanent collection that tell the story of its lasting impact.

Together, our combined arts, culture, and heritage programs showcase the longstanding collaboration existing between nonprofit organizations and private companies as we work together to help create thriving local cultural outlets as well as local economies.  Investing in institutions that foster access to arts and education drives our economy forward for a stronger community. We hope to see you at OKMOA’s eightieth anniversary exhibition and encourage you to take a moment to celebrate and support the arts in our community.

Tony Shinn is president of Bank of America Oklahoma City, and Michael J. Anderson is president and CEO of the Oklahoma City Museum of Art.

The Town of Normal on Monday approved a new budget that lowers spending amid a difficult-to-predict economy.

The town council unanimously adopted the new operating and capital investment budget for the 2025-26 fiscal year. City Manager Pam Reece said the plan hits the town’s financial targets, while still allowing for flexibility.

“If circumstances change one way or the other in terms of our revenue stream, we can tighten our belt more, or we can add more initiatives to our list,” said Reece.

The $211 million budget reflects about 5% less in spending than the previous budget, a change necessitated by a drop in revenue.

Previously, the town said budget cuts will address most of the problem, but also will rely on some excess reserves.

Areas seeing cuts include parks and recreation facilities, some road work and extra payments for pensions.

Illinois Art Station

The council also approved a resolution accepting a donation of land, building and organizational assets from the Illinois Art Station. The nonprofit organization has operated at 101 E. Vernon Ave. since 2021, along with a residency in the Children’s Discovery Museum art studio since 2023.

The move will put the Town of Normal in charge of oversight of the organization. Property transitions will be completed in April.

“Investing in our infrastructure and doing our capital investments is critical to having strong sewers, water mains, roads, sidewalks. That’s all very, very important stuff, but it’s not what you think about when you think about places that you like to visit,” said Reece.

Under the agreement, the town will maintain art-education programming for 75% of programming time for the next 20 years. Facilities and grounds can be used for other community purposes during that time period. The town also agreed to retain the property and use it for community purposes for the next 70 years.

“They had amazing, beautiful assets they had invested in, and they’re just handing it to us to do something more with,” said Beth Whisman, the town’s cultural arts director.

Sanitary sewer lining

The council also authorized a contract with Hoerr Construction for almost $1.5 million, related to the sanitary sewer master plan. The contract is cheaper than the engineer’s estimate as well as the other bid for the project by several hundred thousand dollars.

Police complaint

Nate Anderson spoke during public comment about an encounter he had with Normal Police last month. He said three officers confronted him in response to an anonymous report of a mental health crisis.

He said the officers aggressively confronted him, an ambulance blocked his driveway, EMTs pressured him to go to the hospital and told him that it was “town policy” to do so.

“I was not a danger to myself or others. I was not in crisis. I was not under arrest, but I was treated as if I had no rights, “ said Anderson. “If this is standard procedure, then something is deeply wrong.”