Investing in art, wine, and watches: risks and opportunities that defy convention

Investment in art, wine and watches is no longer synonymous with the eccentric whim of millionaires.

By 2025, these tangible assets are being treated as alternative assets in the portfolios of diversification-minded investors.

Why is this happening now? The answer lies in the search for asset protection, exclusivity, and differentiation in a market increasingly saturated with traditional financial products.

High market volatility, climate crises, and fluctuating interest rates have fueled growing interest in assets that, in addition to financial value, offer cultural, historical, or emotional value.

In this text, we'll navigate this sophisticated yet accessible ecosystem, without illusory promises—just grounded truths, clear risks, and legitimate opportunities.

1. The renaissance of alternative assets: why now?

With the advancement of technology, access to assets such as contemporary art, rare wines and luxury watches has increased.

Platforms like Masterworks, for example, allow for the fractional purchase of artworks, democratizing a previously inaccessible market.

This coincides with the growth of the so-called “passion economy,” where collectibles with sentimental value gain economic relevance.

Diversification now requires more than just stocks, FIIs, and cryptocurrencies.

The modern investor wants portfolios that are crisis-resistant, have low correlation with traditional assets, and, if possible, bring personal pleasure.

This is where tangible assets come into play with a vengeance. It's no surprise that Sotheby's and Christie's broke sales records in 2024, even amid instability in global stock markets.

This new dynamic also reflects a generational shift: millennials and Generation Z, who now make up a significant portion of investors, seek purpose in their financial choices.

Buying a rare watch or a signature painting can mean more than just a return—it can be a form of identity and expression.

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2. Art: between expression and speculation

Investing in art requires more than money — it requires sensitivity, research, and, above all, patience.

It's not a liquid or objective market. The value of a work can increase exponentially or remain static for years.

The appreciation of artists like Yayoi Kusama and Banksy illustrates how the market responds to cultural and geopolitical movements.

According to the Deloitte Art & Finance report (2023), 76% of wealth managers recommend art as a portfolio component to high-net-worth clients.

Additionally, 85% states that clients want their investments to reflect their personal values.

But there are clear risks. The authenticity of the work is crucial—forgeries are still a recurring problem.

Another critical factor is provenance: works without clear traceability can generate legal and ethical problems.

In this scenario, renowned auctions and platforms with specialized curation are indispensable allies.

The market has also benefited from digitalization. tokenization of works through blockchain is growing, allowing investors to acquire fractions of important works.

This process expands access, reduces financial exposure and facilitates diversification within the artistic sector itself.

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3. Wine: bottled gold

A Château Lafite Rothschild 1982 may seem like a luxury item for a select few, but the reality is that rare wines have outperformed the S&P 500 over certain periods.

According to the Knight Frank Luxury Investment Index (2024), fine wines appreciated by 13% in the last year, outperforming the luxury real estate market.

But wine isn't just a bottle. It's history, vintage, terroir, storage, and provenance.

Investment in this sector involves climate factors, temperature control and technical knowledge.

Platforms like Cult Wines and Vinovest offer access to personalized, curated wine portfolios and specialized storage.

Beyond economic performance, there's a sensory element that connects investors to the asset. Wine carries narrative, tradition, and territory. This makes the investment more personal, but also more delicate.

A poorly stored bottle loses value—and, in extreme cases, becomes unusable. This is one of the reasons many opt for professional storage services.

Even so, the growth of specialized funds and indexes such as the Liv-ex 100 — which tracks the performance of the world's most traded wines — signals maturity for the sector.

Investment can be made with planning, study and a pinch of well-managed passion.

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4. Clocks: time as an asset

Watches from brands like Patek Philippe, Audemars Piguet, and Rolex have gone beyond accessories and have become strategic investment pieces.

In 2022, a Rolex Daytona Paul Newman sold for over US$17 million. But these cases are exceptions—not the rule.

The growth of the secondary market driven by platforms such as Chrono24 and WatchBox has expanded access and liquidity.

What once depended on stores and auctions now moves online, with independent authenticators and traceability.

Limited production models, commemorative editions, and vintage pieces that are in good condition tend to appreciate in value over time.

But it's important to remember: speculation can artificially inflate prices, and the market reacts quickly to drops in interest or excess supply.

Watches also involve costs such as maintenance, technical inspections, and insurance. Investing in time is, in a way, an art.

It requires calm, reading trends and, often, patience to wait for the correct appreciation.

5. Investment in art, wine and watches: The role of tokenization in accessing rare assets

One of the most significant advances in the luxury collectibles sector is the possibility of tokenizing real assets. Imagine digitally fractioning a Picasso or a Romanée-Conti.

This process allows investors to access high-barrier-to-entry assets without committing large sums.

Tokenization also increases transparency by using blockchain to record every transaction, origin, and history of the asset. This is what companies like Mattereum are doing it masterfully. This is providing the market with liquidity, security, and scalability—something previously unimaginable for physical assets.

Furthermore, the investor profile is changing. Young digital natives feel more secure investing through technology platforms than through traditional means.

The convergence between technology and cultural heritage could be the way for investment in art, wine and watches strengthens itself as a legitimate asset class.

6. What to consider before diversifying with tangible assets

Despite the fascination and the promise of return, the investment in art, wine and watches must be done with caution.

Unlike stocks or funds, these assets do not have regular cash flow and depend essentially on appreciation.

It's essential to seek expert advice, thoroughly study your chosen sector, and consider hidden costs such as storage fees, taxes, insurance, and resale costs.

Another critical point is liquidity: selling a work of art, a rare wine, or a vintage watch can take time—and require strategic contacts.

For beginning investors, it's best to start small, preferably on platforms that offer fractionalization or specialized funds.

Never commit a large portion of your assets to low-liquidity assets. The suggested allocation ranges from 5% to 10% of the total portfolio.

Conclusion: When emotion and strategy meet

The market of investment in art, wine and watches is more accessible, dynamic and technological than ever.

But make no mistake: it's a market that demands preparation, dedication, and a long-term vision. The returns may be high, but the risks are also real.

Investing in assets with symbolic and historical value can be a powerful way to diversify, protect, and even build a legacy.

The key is to balance emotion with strategy, desire with rationality, aesthetics with data.

If you want to go beyond financial charts and bulletins, consider exploring this universe responsibly.

And remember: not every investment that's attractive bears fruit — but when it does, the value goes far beyond monetary value.

To learn more about art certifications and reviews, visit Art Basel — one of the main events in the global cultural sector.

Frequently Asked Questions

1. Is it possible to invest in art or wine without technical knowledge?
Yes, through curation platforms and specialized funds. However, market research and monitoring are still recommended.

2. Are these assets regulated in Brazil?
There is still no specific regulation for all types of tangible assets, but there are general rules for marketing, taxes and imports.

3. How to avoid fraud and counterfeiting?
Demand certificates, invoices, professional evaluations, and, whenever possible, purchase from platforms with auditing and traceability.

4. What is the minimum capital to start?
It's now possible to invest from R$1,000 in digitized fractions. However, physical assets require more substantial investments.

5. What are the main risks?
Low liquidity, maintenance costs, lack of standardization in pricing and risks of inadequate maintenance.