Investing in porcelain sculptures as financial assets can be alluring due to their cultural and aesthetic value, but it also carries significant risks. One major challenge is market volatility—art prices fluctuate unpredictably, influenced by trends, economic conditions, and collector demand. Unlike stocks or bonds, porcelain sculptures lack liquidity, making quick sales difficult without substantial price concessions.

Authenticity and provenance issues pose another risk. Counterfeits and misattributions are common in the art world, and verifying a piece's legitimacy requires costly expert appraisals. Even genuine pieces may suffer from condition problems, such as cracks or restorations, which drastically reduce value.

Valuation is inherently subjective. Unlike standardized financial instruments, porcelain sculptures lack clear pricing benchmarks, leaving investors vulnerable to overpaying or undervaluing their holdings. Additionally, storage and insurance costs can erode returns, as these delicate items require specialized care.

Lastly, the niche nature of the porcelain market means limited buyer pools, potentially prolonging sales and increasing transaction costs. While the potential for high returns exists, investors must weigh these risks carefully before committing capital to such illiquid and unpredictable assets.