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Finance

Failed Sotheby’s auction of $70M bust leaves art insiders speechless — are collectibles no longer covetable?

Last updated: June 12, 2025 4:56 pm
Oliver James
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Failed Sotheby’s auction of M bust leaves art insiders speechless — are collectibles no longer covetable?
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Don’t missGoldReal estateInfrastructureWhat to read next

What was meant to be a quick sale of a rare antique turned into a sobering reminder of the hidden risks of so-called alternative assets.

“Grande tête mince” — a bronze sculpture by Alberto Giacometti — failed to meet expectations at a recent Sotheby’s auction. Industry insiders and art experts estimated that the sculpture was worth $70 million, however the auction failed after the highest bid maxed out at $64.25 million, according to the New York Times.

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This high-profile flop highlights some of the risks of storing wealth in collectibles. On average, ultra-wealthy families across the world have roughly 13.4% of their assets in artwork and collectibles, according to Deloitte. However, the market is notoriously opaque and illiquid, which means many of these collectible items might not be worth as much as their owners believe.

Investors looking for an asset that isn’t exposed to the same market dynamics as stocks and bonds often have better options than art. Here are three alternative assets that could be more attractive than ancient sculptures or oil on canvas.

Gold

Gold has been on the planet much longer than any piece of ancient art, and its collectors include central banks and sovereign nations. The market for this precious metal also tends to be more transparent and robust.

Gold’s reputation as an uncorrelated safe haven was cemented during the see-sawing of the U.S. stock market in the opening months of 2025. As President Donald Trump’s ongoing trade war whipped up volatility in stocks, bonds and cryptocurrencies, the price of gold surged roughly 25% over six-months.

Adding some exposure to this hard asset could be a good idea if you’re worried about economic growth, inflation or interest rate volatility over the medium to long term.

One way to invest in gold to access tax advantages is to open a gold IRA with American Hartford Gold.

Gold IRAs allow investors to hold physical gold or related assets in a retirement account — combining the tax advantages of an IRA with the benefits of investing in gold. This can make it an attractive option for those looking to potentially hedge their retirement funds against increasing economic uncertainty.

Even better, you can often roll over existing 401(k) or IRA accounts into a gold IRA without tax-related penalties. To learn more, get your free 2025 information guide on investing in precious metals.

Qualifying purchases can also receive up to $20,000 in free silver.

Real estate

Beyond gold, land and property are other tangible investments you might consider adding to your portfolio. They can have strikingly different dynamics to stocks and bonds. Direct real estate as an asset class tends to have low or even negative correlation with the S&P 500, according to an analysis by JPMorgan. This means that if stocks crash, real estate can remain somewhat protected and occasionally even go up in value.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

To be clear, JPMorgan focused on direct real estate deals. That means if you’re a homeowner or landlord with direct ownership, you’re less exposed to the stock market’s volatility.

But you don’t need to buy property outright to benefit. New investing platforms are making it easier than ever to tap into the real estate market without amassing a massive downpayment or taking on a lifelong mortgage.

For accredited investors, Homeshares gives access to the $34.9 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.

With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.

With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.

If you’re not an accredited investor, crowdfunding platforms like Arrived allow you to enter the real estate market for as little as $100.

Arrived offers you access to shares of SEC-qualified investments in rental homes and vacation rentals, hand-picked for their appreciation and income potential.

Backed by world-class investors like Jeff Bezos, Arrived makes it easy to fit these properties into your investment portfolio regardless of your income level. Their flexible investment amounts and simplified process allows accredited and non-accredited investors to take advantage of this inflation-hedging asset class without midnight maintenance calls.

Infrastructure

Infrastructure such as toll roads, bridges, cell phone towers and airports can actually have many of the same dynamics as real estate. However, these assets are rarer and can sometimes have higher earning potential.

According to KKR & Co., a world-leading private equity investment firm, private infrastructure assets across the world performed better than stocks and bonds in 2022 when inflation and interest rates were rapidly rising. That can make these assets a potential shock absorber for a typical investor’s portfolio.

If you’re looking for exposure to this niche asset class, you could consider an ETF such as the Global X US Infrastructure Development ETF. You could also take a closer look at infrastructure ETFs in the green energy space, such as the iShares Global Clean Energy ETF or the First Trust NASDAQ Clean Edge Green Energy ETF.

You can access all of these investments through Wealthfront’s Stock Investing Account. This brokerage account is built with best-in-class technology that allows users to invest in individual stocks (or collections of individual stocks, like ETFs) more easily. You won’t pay commission on your investments, and can start with as little as $1.

Sure, cell towers and solar panels might not be quite as exciting as exotic artwork, but they’re likely to be more lucrative and less volatile.

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Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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