The arrival of the COVID-19 pandemic has taken the world by a storm, causing a big shift in our financial system. Businesses had come to a halt. Some reached a point of no return. Traditional investments were no exceptions. We witnessed extreme volatility in mutual funds and debt securities. As the pandemic continues to cause a shift and pause in numerous industries globally, the call to diversify one’s investment portfolio is critical in a time of crisis.
Therefore, asset diversification should be considered for investment portfolios to minimize risk. As many explore alternative assets to focus on, the question often asked is what are the options?
- Foreign investment in both equity and debt instruments in terms of the countries invested in. Nonetheless, there are exposures to exchange rate risks involved.
- Real estate such as vacant land, house for rent, condominiums, or real estate funds may yield various forms of returns such as rental rate or dividends. Yet, contracts, laws, and liquidity should be considered.
- Collectibles such as coins, stamps, or art are often known to yield high returns.
In 2019, a banana taped to a wall by Italian artist Mourizio Cattelan sold for an astonishing USD 120,000 (equivalent THB 3.6 Million) at Art Basel Miami Beach.
Here’s why investment in art will be worth your while!
- Reputation of the artist
- Story or origin of art
- Historical significance
- Duration of the artwork
- Integrity of the art
- Rarity of the art
- Personal taste or preference
- The need for investor diversification
This February Zipmex celebrates a new partnership with Nova Contemporary to present ‘The Study of A Long Distance Relationship’ by Thai artist, Aracha Cholitgul. For the first time in Thailand, art collectors and investors will have the opportunity to purchase pieces using cryptocurrency on Zipmex!