I have to start paying attention to art as an investment class.
By art I don't mean paintings per se. The parameter includes music rights, movies, digital art and tons of man-made nonsense we didn't even imagine yet.
You won't catch me dead storing a dozen paintings at home. The emergence of non-fungible tokens (NFT) however is starting to make such venture realistic.
The biggest problem with investing in art is it's not within my circle of competence. The second problem is liquidity.
Liquidity may be a smaller problem with enough research. The question of competence however is much trickier.
You'd be tempted to think the first criteria of an investor is art appreciation. That's an easy mistake to make.
My hunch is it's about sussing out the narrative on the art itself.
The closest brush I had with investment like such were domain names. I was holding onto domain names that ended up having no value at all. I didn't know what I was doing.
But it's not that different. A domain name is not necessary for internet to function, especially not a three-letter one. Its value is in making the impression in the minds of humans of what they're about to use.
In a game of narrative, the substance matters less than figuring out what the market thinks about the substance. In poker terms, you don't play the game; you play the players.
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This is exciting enough to deserve its own post.