The art of investing

One of the greatest rewards of passion investing is the ability to enjoy your assets while you own them. Art can transform a space, a wine collection can be built and shared over time, and collectables can become part of your personal story.

At the same time, it’s also true that these assets are generally not income-producing and can be less liquid than traditional investments. Values fluctuate and are influenced by taste, trends, and scarcity.

For many people, the value of passion assets is not measured in the same way as traditional investments. They’re often appreciated for the enjoyment they bring, the personal meaning they hold, and the stories they carry across time. In that sense, their significance is as much emotional and cultural as it is financial.

While passion might spark the first purchase, a clear strategy helps protect the long-term value of your asset. The principles below illustrate some key considerations to keep in mind, using art as an example – though the same thinking applies across many other types of assets.

Understanding the history of an item – who created it, who’s owned it, and how it’s been documented – is crucial. In the art world, provenance and authenticity can have a significant impact on long-term value. You can avoid a lot of costly mistakes by seeking independent verification, expert advice, and thorough documentation before purchasing.

High-value items require specialist care. Art is sensitive to light, humidity and temperature, while wine depends on precise storage conditions. Specialist insurance ensures your collection is appropriately protected, both in transit and in situ.

Just as with traditional investing, diversification matters. Spreading exposure across different types of passion assets or classes within assets – such as artists, periods or regions – can help reduce concentration risk.

Passion investments are often ‘lumpy assets’ that can’t be easily divided or sold at short notice. Thinking ahead about how items may be sold, gifted, or passed on can help preserve both asset value and family harmony. Options include private sale, auction, donation, and inheritance, but there’s no one-size-fits-all approach – that’s why having a plan is key.

Many collectors find value in spending time with the art and the ecosystem around it. Attending exhibitions, engaging with galleries and fellow collectors, and developing familiarity with an artist’s ideas and processes can sharpen your judgment over time.

As such, art fairs play an important role for collectors. By bringing together a wide range of galleries in one place, they allow collectors to gain a broader sense of the contemporary art market within a single setting. For both new and experienced collectors, the concentration of expertise and insight can be invaluable.

As Principal Sponsor of the Aotearoa Art Fair, ANZ Private is proud to support New Zealand’s leading celebration of contemporary art.

The Fair brings together more than 50 leading galleries from across Aotearoa and the Asia‑Pacific region, offering collectors a rare opportunity to engage directly with artists and gallerists, discover exciting new works, and acquire pieces that hold long-term potential – all in one place.

If you’re considering adding passion assets to your portfolio, or looking to better integrate an existing collection into your broader wealth strategy, your ANZ Private team can help.

From acquisition and valuation through to structuring, insurance and succession planning, we work alongside you to navigate the complexities. Together, we can help ensure your collection reflects what matters to you today, while preserving and growing your wealth for the future.