Beauty - And Art - Are In the Eye of the Beholder: How the Appeal of Collectibles is Transforming the Art World

The art market is undergoing a dynamic transformation, with collectors and investors increasingly turning their attention from traditional artwork – such as oil paintings, classical sculpture, and fine furniture – to more unconventional and eclectic categories. While Old Masters and Impressionist works still command respect and high values, a growing segment of the market is being driven by what many term “new art” or alternative collectibles. 

This trend includes everything from Tyrannosaurus Rex fossils and sneakers to ornate 19th-century shaving cream cups – items that blend cultural relevance, historical curiosity and rarity. These nontraditional collectibles often appeal to a younger, more diverse collector base that values storytelling, personal connection and cultural symbolism over formal artistic pedigree. 

At the same time, “ultra-contemporary” artists – those born after 1975 – are dominating gallery representation and auction demand, often with works priced under $10,000. These artists, like the collectibles they parallel,
offer accessibility and a fresh narrative in a market that’s no longer defined solely by oil-on-canvas. 

Whether it’s prehistoric bones or limited-edition Air Jordans, the definition of art and value is expanding. For collectors and advisors alike, recognizing the shift toward the unique, experiential, and unconventional is key to understanding the future of the art world.

As the art market continues to evolve, collectors face a shifting landscape shaped by generational preferences, emerging asset classes, and new challenges in valuation, estate planning, and charitable giving. At a recent panel
discussion, “Navigating the Old and New Art Markets: From Biedermeier to Birkin,”[1] industry professionals from Kaufman Rossin, Jones Foster, and Ronald Varney Fine Art Advisors explored how the definitions of “art” and “collectibles” are expanding, and what this means for collectors, advisors and fiduciaries. 

Here, we highlight some of the key topics discussed and offer insights into navigating the new terrain of the art world.

How Is the Definition of ‘Art’ Changing?

Traditional notions of art have long centered around painting, sculpture, antique furniture and classical decorative objects. However, the market is increasingly embracing “nontraditional” collectibles that fall outside these categories. Fossils, sneakers, luxury handbags and even ornate 19th-century shaving mugs are now entering private collections, museum exhibitions, and high-profile auctions.

This shift reflects both cultural and generational changes. Younger collectors, particularly Millennials and Gen Z, are more likely to gravitate toward items that reflect personal identity, nostalgia or cultural commentary. These pieces may not conform to classical standards of artistry, but they are gaining traction as meaningful, valuable assets.

While traditional art still enjoys enduring prestige and long-established valuation methods, the rise of ultra-contemporary artists signals a growing appetite for innovation and immediacy. Recent studies show galleries increasingly prioritize these artists, particularly those born between 1975-1989 and after 1990, as they drive market relevance and buyer engagement.

Practical Challenges in Collecting New Forms of Art and Collectibles

With the expansion of what constitutes a “collectible,” new challenges have emerged – particularly around authentication, provenance and valuation. A Tyrannosaurus fossil may captivate buyers, but confirming its origin, legality of excavation and scientific  classification requires a specialized team of experts. Likewise, a first-edition pair of Nike Air Jordans may command a premium, but without verifiable provenance and condition reports, the value is speculative.

Contrast this with traditional art: while forgeries and authenticity disputes still abound, the infrastructure for evaluating classical works – galleries, auction houses, catalogues raisonnés – is more robust and time-tested. Moreover, valuation in newer markets can be volatile. Trends in fashion, pop culture and even social media can rapidly inflate or deflate demand for a given item. For collectors seeking long-term investment or legacy planning, these fluctuations require careful monitoring and frequent reappraisal.

How Often Should Collectors Update Their Inventory and Valuations?

Regardless of what a collection includes – be it Biedermeier furniture or Birkin bags – it’s critical to maintain a detailed, up-to-date inventory. Panelists emphasized the importance of conducting professional
valuations every two to three years. This not only supports proper insurance coverage but also ensures that estate and tax planning reflect the current market reality

Inventorying should include photographs, descriptions, purchase details, provenance documentation and condition reports. For newer collectors, especially those entering the space through alternative assets, developing this habit early is essential. Many collectors underestimate the administrative burden of managing a collection, only to leave heirs or executors in a difficult position later.

When Should Collectors Start Talking to the Next Generation? 

It’s never too early to begin the conversation. Panelists noted that some of the greatest losses – financial and emotional – occur when a collector passes away and no clear plan exists. A collection that held deep personal significance to the original owner may become a source of conflict or confusion for heirs with differing values or tastes.

Whether the intention is to keep, sell, or donate the collection, discussing expectations with family members and integrating the collection into a broader estate plan is crucial. For traditional art, this might involve identifying specific heirs, creating trust structures or making arrangements with a museum. For newer or niche collections, it may require educating the next generation about the asset’s value and cultural context. Failing to plan can lead to fragmented sales, undervaluation, or even loss of the collection’s integrity.

What Should Donors Know Before Gifting Art to Charity?

Charitable donations of art and collectibles can offer significant tax benefits – but they also come with complex substantiation requirements. The IRS scrutinizes these transactions closely, and panelists stressed the importance of involving tax and legal advisors early in the process. 

The fair market value deduction for donated artwork may be limited or disallowed if the recipient organization cannot demonstrate a “related use.” For example, donating a painting to a museum that will display it may allow a full deduction, while giving it to a nonprofit hospital that plans to sell it may not. These rules apply whether the recipient is a public charity, private foundation or donor-advised fund.

Further, high-value items require qualified appraisals, and the donor must submit IRS Form 8283 with the tax return. If the art is later sold by the charity within three years, the IRS may “claw back” the deduction unless the charity certifies related use. 

For traditional art, many institutions have well-established intake and display procedures. With more unique or unconventional items, charities may lack the expertise or desire to accept the gift, making early
discussions and contingency planning all the more essential.

Is Art Still an Investment – Or Something Else? 

The panel concluded by revisiting an essential theme: while many treat art and collectibles as investments, their value often transcends financial metrics. Art tells stories, preserves history and reflects identity. This is true whether the item is a 17th-century oil painting or a signed pair of sneakers from a cultural icon. 

Traditional art may offer stability and long-term appreciation, while newer collectibles can deliver excitement, cultural relevance and rapid market growth. The key for collectors and their advisors is to understand the distinctions, navigate the complexities and plan with clarity.

As the definition of art continues to expand, so too must the strategies for acquiring, preserving and transitioning these assets – because whether it’s Biedermeier or Birkin, the art of collecting is more dynamic than ever.

[1] “Navigating the Old and New Art Markets: From Biedermeier to Birkin,” April 10, 2025, Palm Beach Gardens, Florida, featured panelists Jennifer Quent (moderator) and Michael Kramarz of Kaufman Rossin; Ronald Varney of Ronald Varney Fine Art Advisors; and Alexander M. Parthemer of Jones Foster.

Republished with permission of the Florida Bankers Association from the August/September 2025 issue of Florida Banking magazine.

The information provided in this article does not, and is not intended to, constitute legal advice; it is for general informational purposes only. No reader of this article should act or refrain from acting on the basis of this information without first seeking legal advice from counsel in the relevant jurisdiction to ensure the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.

Alex Parthemer, a member of Jones Foster's Private Wealth, Wills, Trusts & Estates and Corporate & Tax practice groups, focuses his practice in the areas of estate planning, probate and trust administration, tax planning, business planning, and transactional corporate law. 

Alex works with individual clients and families to develop personalized estate plans for asset protection and distribution while minimizing estate, gift, and generation-skipping transfer (GST) tax impact. His background in complex tax planning uniquely positions him to represent business owners and family offices in a wide range of corporate matters. Alex holds an LL.M. in Taxation from the University of Florida Levin College of Law.

Rachel Sears, a member of both the Corporate & Tax and Private Wealth, Wills, Trusts & Estates practice groups, advises businesses and individuals in the areas of corporate law, estate planning, and trust and estate administration. Rachel focuses her practice on mergers and acquisitions, where she advises clients through each stage of a transaction. She guides businesses through the legal due diligence process and leads the negotiation of purchase agreements and related documents, ensuring deals are structured to achieve business objectives while reducing risk.

In addition to her M&A work, Rachel serves as trusted corporate counsel to companies across diverse industries. She regularly assists with third-party and affiliate agreements, reviews and negotiates refinancing and credit agreements, and prepares internal governance documents that promote effective operations.