Increased volatility in stocks and cryptocurrencies is pushing some investors toward alternative assets such as art for portfolio diversification. Art is no longer just an investment for billionaires and the super rich. Recent trends show that young Americans are increasingly entering the art market as collectors and investors.
Millennials and Generation Z make up the majority of active art buyers in the 2025 Global Survey of Affluent Collectors conducted by art market research firm Arts Economics and UBS. The survey found that 74% of respondents were from these two generations, suggesting that young collectors play a key role in driving activity in the art market.
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As interest in art investing grows, financial institutions are launching new products and consulting services to help clients navigate the sophisticated art market. Bank of America Corporation (NYSE:BAC) recently launched an art advisory service for wealthy clients. It offers tips on art history, market trends, and auctions, while giving customers access to galleries and private dealers as they build collections for estate and legacy planning.
Platforms like Masterworks have also made it possible for a wider range of investors to access the art market. By allowing the public to buy shares in blue-chip artworks, Masterworks gives investors the opportunity to diversify their portfolios with alternative assets without the need to purchase entire pieces, making art investing accessible to younger and non-traditional collectors.
Art is no longer just something to hang on the wall and keep for life. For many wealthy collectors, this is a way to generate cash, although many people take out loans against their art collections to raise money for business ventures and other opportunities. About 70% of wealth managers reported higher demand for art-backed loans last year, according to a Deloitte survey. Among family offices that offer arts financing, 67% said arts-backed loans were used primarily for business purposes in 2025, nearly double the 36% reported in 2023, the survey found.
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“We’re going to see a lot of art changing hands,” Bank of America director of art services Drew Watson told British financial news outlet Financial News. “Some of this art is being inherited; some collections will be relocated, artifacts will be sold and other works will be purchased.”
