Greg Davies of Barclays Wealth says that clients who invest in treasure assets – fine art, gold, diamonds – for emotional enjoyment and social reasons, need to think carefully about these types of investments.
The work of the behavioural finance group which Greg leads has seen growing interest over the last six years from clients on how to handle their investments. Detailed research enables Barclays Wealth to speak with authority on the matter and this is backed up with personality profiles for each client so that they make the right decisions.
‘Buy art work by all means if you like it’, advises Greg, ‘but remember that these types of investments do not provide dividends. Prices in diamonds and gold have been going up which gives the illusion of safe investment, but they can also fall.
Investor fatigue and worries about the Eurozone crisis has made clients nervous about taking risks and putting money into treasure assets has seemed a sensible alternative. But in some ways this is holding the economy back and clients might be better using their money to fund entrepreneurs’.
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