May 27, 2026
A centuries-old portrait once buried in a corporate basement just sold for a small fortune. The transaction highlights a growing trend among Canadian investors who are looking beyond traditional stocks and bonds to build wealth.
A 361-year-old painting of Prince Rupert, the first governor of the Hudson’s Bay Co., fetched $217,250 at a live auction in Toronto on May 22, 2026. The sale comes as the collapsed department store chain unloads its historic 4,400-piece art collection through Heffel Fine Art Auction House.
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For generations, the artwork was believed to be the product of studio assistants working under Flemish portraitist Anthony van Dyck. Its valuation was pinned at just a few thousand dollars. However, an international investigation by art historians eventually proved the piece was actually painted by Dutch portraitist Peter Lely (1). The discovery instantly bumped the initial conservative estimate to $150,000 before bidding pushed the final price tag even higher.
The sale is drawing fresh attention to the world of tangible alternative investments. As financial markets face ongoing volatility, items like fine art, rare coins and vintage wine are increasingly viewed as viable hedges against inflation.
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Understanding the alternative asset class
Alternative investments encompass any financial asset that does not fall into the conventional categories of cash, bonds or equities. For decades, institutional funds and ultra-wealthy individuals have used these tangible assets to diversify their portfolios.
According to data tracked by the Heffel Fine Art Auction House (2), Canadian masterpieces routinely command six and seven-figure sums. The same auction that featured the Prince Rupert portrait also offered works by iconic Canadian figures, including Emily Carr, Jean Paul Riopelle and members of the Group of Seven.
The primary allure of these assets is their low correlation with public stock exchanges. When equities plunge, the value of a rare painting or a piece of real estate does not necessarily follow suit. This independence can stabilize an investment portfolio during economic downturns.
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High risks and hidden costs
Despite the potential for explosive returns, experts warn that alternative tangible assets carry unique structural hazards that do not exist with mutual funds or exchange-traded funds.
The most significant hurdle is liquidity. While a public stock can be sold in milliseconds, physical art can take months or even years to liquidate. Finding a motivated buyer typically requires working through specialized auction houses or private dealers.
Transaction fees are also exceptionally high. In the case of the Hudson’s Bay Co. painting, the final purchase price of $217,250 included a hammer price (the final, winning bid accepted by an auctioneer for an item at an auction) of $180,000 plus a substantial buyer’s premium. Heffel charges a premium of 25% on the first $25,000 of the hammer price, plus 20% on any amount exceeding that threshold, alongside applicable sales taxes.
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Furthermore, physical assets demand ongoing maintenance. Investors must budget for professional appraisal fees, climate-controlled storage, restoration and specialized insurance policies to protect against theft or property damage.
The authentication gamble
The dramatic price surge of the Prince Rupert portrait highlights another critical risk factor specific to alternatives: provenance and authentication.
Had art experts not uncovered centuries-old records to reattribute the piece to Peter Lely, the asset would have remained valued at a fraction of its ultimate selling price. Misattributions and counterfeits are common in the collectibles market, meaning an investor’s entire thesis can hinge on the subjective consensus of historians.
For Canadian investors interested in the space but unwilling to buy physical paintings, newer financial products are bridging the gap. Fractional ownership platforms now allow individuals to buy shares of high-value artwork, though these platforms still carry liquidity and platform-specific risks.
As the retail financial landscape evolves, alternative assets are becoming more accessible. However, wealth managers generally recommend that collectibles and alternative tangibles occupy no more than 5% to 10% of an individual’s total investment portfolio, ensuring that core financial security remains anchored in liquid, traditional assets.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Toronto Star (1); Heffel Fine Art Auction House (2)
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Leslie Kennedy served as an editor at Thomson Reuters and for Star Media Group, followed by a number of years as a writer and editor and content manager in marketing communications, before returning to her editorial roots. She is a graduate of Humber College’s post-graduate journalism program and has been a professional writer and editor ever since.
