Valuable artworks are often used as collateral for loans and other financial instruments, so they can be used to make money.
There was a time when art, while hopefully pleasurable to own, was a non-performing asset financially. No longer. As the worlds of art and finance increasingly converge, leveraging art collections to unlock liquidity has become a healthily growing sector, according to its participants. There are two main groups of players: specialist lenders, who loan against art and other assets, and banks, who as part of their service will give loans to their clients, their art and other assets being the collateral.
Yes, you can't just sell it, you can also mortage it, to get money, which you can then invest in stock that pays dividends or bonds that yield interest.
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Valuable artworks are often used as collateral for loans and other financial instruments, so they can be used to make money.
There was a time when art, while hopefully pleasurable to own, was a non-performing asset financially. No longer. As the worlds of art and finance increasingly converge, leveraging art collections to unlock liquidity has become a healthily growing sector, according to its participants. There are two main groups of players: specialist lenders, who loan against art and other assets, and banks, who as part of their service will give loans to their clients, their art and other assets being the collateral.
https://www.theartnewspaper.com/2023/03/08/art-loans-spike-a...
Yes, you can't just sell it, you can also mortage it, to get money, which you can then invest in stock that pays dividends or bonds that yield interest.