Recently the word investment has been a bit of a dirty word. The stock market and real estate have gone from being a sure thing to an incredibly risky proposition. So what about art? Is it a safer area to invest?
As with any type of investments it is always good to have a diverse portfolio this goes for art as well. Over the long run fine art can be a great investment, that said buying art is long term investment. Over the past 10 years auction prices have been rising as has the celebrity of many artists. Even as the stock market began to tumble this fall Damien Hirst, a rock star artists if there ever was one, managed to sell over 200 artworks at Sotheby’s for nearly $200 million.
Since that auction buyers have become more cautious, at the recent Impressionists and Modern Art auction at Sotheby’s only 45 of the 70 lots up for auction sold. With shrinking returns on other investments art buyers are becoming more cautious. This is understandable with news stories telling us how everyone is cutting back, but if you can afford to do so now is the time to buy art.
With the sudden market panic, prices on art will begin to creep down, many works of high quality will be coming to auction as companies begin liquidating their corporate art collections. In addition investors who need extra cash will also be selling leading to a great opportunity for collectors. But what if your interested in investing in art but don’t have a Monet budget what can you do?
Look at art galleries, many galleries handle a variety of artist at various stages in their careers, younger artist or artists who are from countries that are becoming global player are a great area to look into. If you are looking at this from an investment standpoint start by visiting galleries; a gallery with a smart staff will be able to point you in the direction you want to go. Contemporary Indian Art is an area that has been growing steadily over the past 10 years both in India and in the West. Many of the older and mid-career artist are commanding prices that rival their western contemporaries. But the younger artist are creating high quality work that is proving to be a good area to invest.
If you decide you do want to invest in art, learn a bit about your poetical investment. Don’t just buy what you love – educate yourself first. Visit museums and galleries. Look for work by any artist studying with artist who you are interested in and who hasn’t “hit” yet. Also look beyond paintings on canvas, drawings, watercolors, and fine-art prints tend to be undervalued, so you might just get a real deal on one of those.
And in the end if the market falls out of the art world too you still have more than you did when you invested in stocks, after all who decorates with stock certificates?
Friday, November 21, 2008
To invest in Art or Not that is the question
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6 comments:
This is great article I would like to learn more about collecting art. We I go to art galleries the staff makes me feel so intimidated.
Investing in art is a great thing to do but it's a good idea to learn more about what your investing in.
Interesting analysis of the recent economic crisis and art. Is there anything that people like myself can do who have lower incomes but would really like to invest in something like this?
If you are interested in investing in art but have a lower income you still may be able to afford works by younger artists, or works by students. All tho a riskier investment, it can be rewarding to help an artist establish their career. Also in this case as you would most likely be living with the work make sure it's a piece you love that way if your chosen artist does not become the next big thing you still have a wonderful piece of art work that enhances your life.
I will have to do some research and see if investing in art is for me.
This article really gives one insight into art investment. I would like to learn more about it.
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