44% of demand for physical gold is for jewelry, underlining the close links between the gold and art markets. Yet an analysis of these two worlds reveals marked structural differences, reflecting sometimes opposing investment logics.

Between the age-old security of gold, recognized for its stability and role as a safe haven, and the sometimes spectacular potential of art, which of these two assets proves to be the most profitable, and above all, the most suited to your investor profile?

This comparison aims to answer this question by exploring the historical performance, specific risks, taxation, liquidity and cultural dimensions of each asset.

ARTICLE SUMMARY :

• 1) Gold and Art in brief
• 2) What are the advantages for your estate?
• 3) Art: a market in slight progression
• 4) Gold: unrivalled liquidity
• 5) Metals or paintings: what are the prospects?
• 6) Taxation: what taxes do you have to pay?

1) Gold and Art in brief

While investors in art and gold can sometimes be the same, it's important to emphasize that these two assets respond to distinctly different asset rationales.

- DIVERSIFICATION: both art and gold can be used to diversify a portfolio. Gold, with its low correlation to financial markets, and art, with its valuation disconnected from traditional cycles, can play a complementary role in a wealth allocation.

- REQUIRED LEVEL OF EXPERTISE: investing in gold requires little technical knowledge, whereas investing in art requires genuine expertise or professional guidance, given the specific valuation risks associated with each work of art or artist.

- PERFORMANCE: the performance of gold is rather attractive and constant, whereas that of the art market is highly variable and riskier.

- SUSTAINABILITY: gold is a tangible, universal asset, used as a store of value. It benefits from a clear regulatory framework, a structured market and international recognition.

Gold is therefore a standardized, international, well-known and structuring asset in a financial portfolio or family estate.

Art, on the other hand, requires in-depth knowledge, rigorous selection and targeted diversification on specific works, with a risk that is both global and "idiosyncratic".

2) What are the benefits for your estate?

For over fifty years, physical gold has demonstrated a remarkable ability to preserve purchasing power. Its price increased almost 100-fold between 1970 and its peak in 2025. This progress was achieved despite long phases of stagnation, notably between 1980 and 2000, underlining its resilience over the very long term.

On average, gold delivers an annual return of 8-9% in dollar terms. Its best-performing periods are between 1970 and 1980, 2000 and 2011, and between 2019 and today. Gold's appeal lies in its consistency and ability to appreciate in the most uncertain economic phases. Moreover, gold's low correlation with traditional financial markets makes it an effective diversification tool, reducing overall portfolio risk.

The art market, meanwhile, is more complex to grasp in its entirety. While some works by well-known artists can fetch record prices, average performances vary widely according to creator, artistic period or market segment.

According to Artprice (Art Market Report 2023), prices of listed works rose by +80% between 2000 and 2020, representing an estimated average annual return of between 5% and 7%. However, these figures mask considerable volatility: some works double in value in just a few years, while others stagnate or lose their appeal on the market.

3) Art: a market in slight growth

According to UBS, the number of transactions on the global art market rose by 3% in 2024, although the total value exchanged fell by 12% year-on-year to $58 billion. The United States alone accounts for 43% of global market value, far ahead of the UK (18%) and China (15%), according to the same report.

High-end sales, particularly those involving works in excess of $10 million, saw a marked contraction in 2023. Several major auction houses reported a decline in revenues in this segment, linked to less abundant supply and more cautious demand from wealthy collectors.

Source: The Art Basel and UBS Art Market Report 2025 | UBS Global

On the other hand, the entry-level segment and smaller galleries recorded a significant increase in activity. Again according to Art Basel and UBS, dealers with annual sales of less than $250,000 posted growth of 17% in 2024. Similarly, sales of works under $5,000 increased, reflecting the market's growing democratization and diversification of buyer profiles.

Finally, the volume of online transactions continues to grow, representing almost 18% of total sales according to Artprice. However, this share is tending to stabilize after the exceptional peaks seen during the pandemic.

• These figures illustrate a change in behavior among investors and art lovers, who are now more inclined towards more accessible formats or emerging artists, perceived as less risky.
• They also reflect a refocusing on affordable tangible assets, against a backdrop of persistent inflation and economic uncertainty.

4) Gold: unrivalled liquidity

Contrary to popular belief, physical gold is one of the world's most liquid assets. It benefits from a structured international market, with universal reference prices and constant demand. Bullion and coins can be resold in a matter of hours or days, both through recognized professionals (such as Godot & Fils) and via specialized platforms.

Transaction fees remain relatively moderate, generally varying between 1% and 10% depending on product type (see the evolution of 15 products), quantity sold and distribution channel. This operational efficiency makes gold particularly attractive to investors wishing to liquidate their assets quickly, especially as trading volumes are high and products largely standardized.

Gold therefore stands out for its exceptional liquidity, which is rare in the world of tangible assets. Even though certain fees may apply, the yellow metal remains easy to monetize, whatever the economic climate.

On the other hand, the resale of a work of art is far more complex. It depends on many factors, such as the artist's reputation, the quality and condition of the work, the investor's network, and the sales calendar. It often takes several weeks to several months to organize an effective sale, whether in a gallery or an auction house.

What's more, transaction costs are particularly high, reaching up to 20% or more when commissions, resale rights and other ancillary expenses are taken into account.

Nevertheless, it's worth highlighting the particularity of investing in semi-numismatic (collector) coins in the gold market. This segment often requires more or less in-depth historical knowledge.

=> To sum up: gold often offers a quick and less costly way out, while art requires longer lead times and high costs, making its liquidity much more limited.

5) Metals or paintings: what are the prospects?

The gold market is underpinned by clearer economic fundamentals, thanks in particular to a centralized structure based on a balance between supply and demand, as well as rigorous monitoring of mining production conditions. Over the past two years, it has been on a solid uptrend, driven by the resurgence of geopolitical tensions and growing supply difficulties.

The art market, on the other hand, is more subject to the singularity of each work. Its dynamics are highly dependent on subjective factors such as cultural trends, the artist's reputation and financing conditions.

Against a backdrop of high interest rates, the scarcity of liquidity among private individuals can put the brakes on investment in art, a much less marked phenomenon for gold, demand for which remains structurally buoyant.

Precious metals thus fit more naturally into a generalist investment logic (the famous "20 francs"), as a portfolio diversification tool with long-term performance potential.

Art, on the other hand, is a niche investment, aimed at discerning connoisseurs, where the expertise and selection of works are crucial. Ideal for diversifying assets, it can nevertheless prove much riskier in the absence of in-depth knowledge.

• In 2025, the gold market confirmed its upward momentum, supported by growing investment flows.
• As for art, according to UBS, dealers expect sales growth to be mainly concentrated on works valued at between $500,000 and $1 million, while sales over $10 million are likely to decline, a sign of increased caution in the high-end segment.

6) Taxation: what are the taxes to be paid?

Gold and works of art benefit from relatively similar tax regimes in France, offering two options at the time of resale: flat-rate taxation or capital gains taxation, with possible exemption after 22 years of ownership.

For physical gold, a specific regime applies:

• Flat-rate tax on precious metals: 11.5% of the sale price, in the absence of proof of purchase.
• Option for capital gains tax: 36.2% (tax + social security contributions), with a 5% annual allowance from the 3rdᵉ year of ownership, leading to total exemption after 22 years.

For art, a comparable system exists:

• Flat-rate tax: 6.5% of the sale price.
• Or capital gains regime: same rate of 36.2%, with a progressive allowance up to full exemption after 22 years of ownership, subject to being able to justify the purchase price.

Conclusion

Physical gold and art are two major pillars of investment.

From the above, it's clear that gold shines for its liquidity, stability, clear taxation and solid historical performance. Its average annual return of 8-9% over recent decades, its ability to withstand economic crises, and its strong worldwide demand, whether from banking, industrial or jewellery sources, make it a benchmark asset for cautious investors.

Art, on the other hand, is attractive for its cultural, unique and potentially highly profitable aspects. Some works can multiply in value in a short space of time, but this is based on subjective criteria, sometimes passing fashions, and expertise that is sometimes difficult to access. The market remains less liquid, more opaque and requires a rigorous selection process. However, the latest data (Art Basel & UBS 2025) show a boom in the affordable art market, reflecting a welcome democratization and a change in buyer behavior.

In short, gold is proving to be an accessible, tangible and durable solution, particularly well-suited to uncertain economic times. Art, on the other hand, is a bolder bet, reserved more for enthusiasts or experienced investors prepared to take the time and risk to invest in works of high emotional and potential value.