The Holding Period Effect

Posted On October 16, 2019

Published in the Deloitte’s Art & Finance Report 2019 along with ArtTactic. This article examines the relationship between how long a work of art is held off the auction market, and the annualized rate of return. Overall, annual returns have stayed consistent regardless of how long off the market, but volatility of returns decreases with longer holding period. This demonstrates how art can be a great long-term store of value.