INVESTMENT STRATEGY- A variety of strategies are used to leverage returns to the investors. Major strategies are buying and hold. Sector focused strategies, for example, Chinese art or American Contemporary art tend to use. Geographic arbitrage aims to leverage differences in demand and price in differing geographic areas. Period strategies can be used , which is focused on certain time periods such as, Modern, Impressionist, and Contemporary, for example. Intrinsic value strategy can be used which allows the buyer deep discounts due to their actual or potential value. Distressed art which can also be purchased at deep discounts due to insolvency and bankruptcy.
Has a long history of investment due to overall strong demand for high-quality collections and pieces.
Due to the potential of high rate returns to investors, private equity has gained in popularity.