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An old school way of thinking that I often hear is that art is an illiquid asset, but the same can be said about real-estate. The fact is, a shrewd investor doesn't buy and sell real-estate, they hold onto their property and use their real estate asset as collateral to borrow against when they need liquid funds. Today most countries with developed financial sectors offer financial options for art-collectors who wish to use their art-works as collateral against a loan. My understanding of an investment is something that a person invests in with a long-term vision.

Short-term buying and selling cannot be considered an investment, but rather as speculation. Over the years art has proven to be a solid investment that can hedge against inflation, and with more financial institutions following the bandwagon of accepting art as collateral, the old school thinking of art as an illiquid asset does not hold water any more.

A recent example of art as an investment is the auction of the Lehman Brothers art portfolio, where most of the art-works achieved record and fetched over $12 million. For those who still believe that art is an illiquid asset, the reasons could be that they are not knowledgeable about financial options that are now on offer, or they confuse investments with speculation. The reality is art possess all the features for it to be deemed an asset class.