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Investing in Art

Writer's picture: Paul ConnorPaul Connor


Quick overview and some facts:
'Investing into art could help you become financially independent. While art is normally a long-term investment, holding this asset on your books for 10 years or longer can prove to be a profitable way of generating income in the future.   
Although historical artworks are often seen as the most valuable – with works by famous painters such as Da Vinci and Modigliani frequently topping over $100m in auctions – contemporary artwork is also becoming an increasingly attractive investment.
Since 1985, contemporary art has delivered an annualised return of 7.5% to investors, and while the art market in 2018 was valued at around $64bn, contemporary artworks are relatively more affordable, making them a potentially more attractive investment.  
But while some pieces of art can be sold on for vast sums of money, investors face the additional challenge of the value of artworks being driven by other consumers. In other words, a piece of art is only worth what others believe it to be worth, so there’s no guarantee of any investments paying off in the future.
For this reason, investments into art come with some risk and are usually an alternative investment.'  




Paul writes:

In my opinion and experience, it would not be a good idea to purchase a piece of art, solely, as an investment, A piece of art can increase in value but can also lose value. To make it more likely that the piece of art increases in value I would suggest Originals or Limited Edition Prints of artists that are technically gifted, unique and are passionate about their art and their longevity.
Patience is required, generally, you may not see a significant rise in value for 10 years and imagine what could happen in that amount of time, the value of art has cycles of rises and falls.
If you want to invest in art it would, also, be necessary to protect the art from light, damage etc, it may be an idea to frame it with art glass and store it safely and insure the pieces individually if they have value.

In conclusion my view would be, buy art that you like, frame the art and hang it in your house/office, enjoy your art and, periodically research the artists/prices and if the value increases quickly then options to sell open up for you.
If you are buying art as an investment, protect it and store it away from light, moisture and flat (ie not rolled up) insure the pieces individually and periodically research the value of it or similar pieces by the artist.

Good Luck




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