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What are Emotional Assets
Emotional Assets are an emerging asset class. The term ‘Emotional Assets’ covers a broad spectrum of collecting categories that include fine art, contemporary design, rare stamps, ancient coins, etc.
What all of these have in common is the emotional dividend that ownership of them bestows on the owner and the emotional premium that the owner is willing to pay in order to acquire them. What makes buying these assets fundamentally different from other assets is EMOTION – the combustible that fuels the art market engine. In recent years, fine art, diamonds and and rare musical instruments have all been promoted as stand-alone asset classes. Our research at EAMR indicates that these categories should be considered a subset of the broader asset class called ‘Emotional Assets’. Why ? Art and diamonds have their own unique cycles of boom and bust that make their risk and return profile very difficult, if not impossible, to predict and control. That makes them unsuitable for the majority of investors. Our research at EAMR indicates that when you combine a number of these categories into a broad based portfolio that the returns and volatility become far more stable and predictable. That is, they take on the characteristic of a real asset class. | |
Data Source: Art Market Research | |
| Although there has historically been a demand for Emotional Assets that exceeds supply, causing substantial increases in value, there is no guarantee that this will be the case in the future. Demand for Emotional Assets of a particular area, issue or type may be affected by regional or world trends and tastes. | |
