Chris Warner, Wealth Advisor, Practice Management Lead and at Nicola Wealth in Victoria, B.C., weighed in on how he discusses collectible luxury markets with clients. He noted most clients are drawn in by the emotional dividend these assets provide rather than a need for diversification. Warner cautioned that these markets are highly inefficient, with forgery risk and steep auction commissions complicating resale, so he advises treating an item as either a store of value or a source of joy. He added that estate conversations, including the capital gains tax owed on inherited art, are worth having early to avoid family conflict down the road.

Read more: Do Advisors Need to Understand Collectible Luxury Markets to Serve HNW Clients? | Wealth Professional