Art is not an investment. It’s laundering 101.

JohnnyDoe

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Dec 29, 2008
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Let’s kill the myth once and for all.
Art is not an “investment.”
It’s a tax optimization tool, a reputation veil, and a money laundering pipeline, wrapped in a canvas and beautifully framed.

The only ones who push the narrative that art is a store of value or long-term investment are the dealers, galleries, and auction houses who make obscene margins off you believing that nonsense. They market it like Wall Street markets NFTs or CFDs: all talk, no fundamentals.

Why Art Isn't an Investment:​

  • No intrinsic value. Art generates no cash flow, no dividends, no rents. Its “value” is entirely subjective and dependent on hype, social signaling, and insider collusion.
  • No real market price. The art market is opaque by design. Most deals are private. Prices are fabricated via insider bidding at auctions, then used to justify valuations elsewhere. Try selling that “$2 million Basquiat” and see how liquid your investment is.
  • No yield, no compounding. You’re not earning interest. You’re paying storage and insurance for something that can’t even be proven to hold value over time. That’s negative carry in disguise.
  • No market efficiency. Unlike public markets, art is illiquid, unregulated, and driven by artificial scarcity. That’s not a market. That’s a stage show.
Now for the real use:

What art is good for:​

  • Laundering money. Buy art anonymously. Ship it to a freeport. Sell it later through a related party at a new price. Voilà: clean capital gains. No one asks questions. No FATF compliance. No KYC. Just “taste”.
  • Parking wealth. A painting is portable, discreet, and immune from the banking system. For oligarchs, traffickers, and politicians, it’s the perfect way to store value when gold is too obvious and Bitcoin too traceable.
  • Reducing taxes. In the US and many other countries, “donating” art to a museum at an inflated valuation gives you a massive tax write-off. Often worth more than what you paid. Even better: the museum might let you keep it on your wall.
  • Cross-border capital movement. You can’t wire $10M out of certain jurisdictions easily. But you can ship a $10M “painting” on a plane. Customs? “It’s personal property”.

The Real Con:​


Art dealers sell the illusion of investment to the dumb money.
Just like watch dealers pumped “Rolex as investment” until speculators flooded the market and prices crashed.
The smart money doesn’t buy art to invest.
They buy it to hide, move, or erase money.

If you think you're the next Medici for buying a digital ape or an oil-on-nothing for $500K, you're not investing: you're the mark.

Morale: Art is beautiful. Just don’t confuse it with a portfolio.
 
I assume wine and archive alcohol you regard as the same ? No yield. The intrinsic value could be its scarcity?

I made some nice profits on whisky and some liquor from China. Whisky can be somewhat of an investment. However considering the effort I put into selling these bottles, I wouldn't say it's worth one's time. It had to be sold at an auction on London and it was stuck at UK customs for weeks. I'd say only worth it if you really want to diversify your wealth as much as possible for some reason. Better to treat collecting it like a hobby.
 
I was looking into art because I like the anonymity aspect, but never got started because I haven't the slightest idea what is "good". Seems from what OP says, that "good" is what the insiders decide.

Ditto whisky, but for reasons of storage.

Maybe if I was more knowledgeable, I'd work my way around the problems.

So my anonymous holdings are still crypto and metals. Thanks for warning me away from art, but I still really want to diversify my asset classes though.
 
Financial markets, real estate, agriculture... you can also have a look at businesses for sale, for example on https://acquire.com/
But I'm one of those weird people that is anonymous or nothing. I know crypto and metals very well to know how to be anonymous with them. Even in financial markets I use a trustworthy, unregulated broker that requires no ID and no bank touches it.

I suppose real estate can be done with a Wyoming LLC and compliant seller who takes crypto, like this.

I'd imagine agriculture would be difficult though, due to required farming regulations?

Buying a business would also be difficult to be anonymous but I admit I'm not knowledgeable about that area.
 
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But I'm one of those weird people that is anonymous or nothing. I know crypto and metals very well to know how to be anonymous with them. Even in financial markets I use a trustworthy, unregulated broker that requires no ID and no bank touches it.

I suppose real estate can be done with a Wyoming LLC and compliant seller who takes crypto, like this.

I'd imagine agriculture would be difficult though, due to required farming regulations?

Buying a business would also be difficult to be anonymous but I admit I'm not knowledgeable about that area.
These people are listen too CN
 
But I'm one of those weird people that is anonymous or nothing.
Best strategy! 👍
I know crypto and metals very well to know how to be anonymous with them. Even in financial markets I use a trustworthy, unregulated broker that requires no ID and no bank touches it.

I suppose real estate can be done with a Wyoming LLC and compliant seller who takes crypto, like this.

I'd imagine agriculture would be difficult though, due to required farming regulations?

Buying a business would also be difficult to be anonymous but I admit I'm not knowledgeable about that area.
Simply ask a friend to invest for you. Imaginary friends are very trustworthy.
 

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