As a result of my blog on real estate I received a call regarding art as an investment vehicle. While art is not my area of specialty I looked up some information to share:
Throughout history, art generally has been a dependable investment. ” In Europe and the Middle East and Asia, art for centuries has been considered an important store of value, an asset” That was the case in the United States until the Great Depression, when real estate started to become a more stable asset and art collecting seemed like a hobby for the wealth.
This recent recession has American’s, once again, thinking of art as in investment. Artvest Partners, a New York based firm that provides guidance to private collectors estimates that international art sales increased 27% in 2010, with transaction amounting to $57.4 billion.
In my opinion art is a risky investment, however, with risk, comes the potential for reward. Unlike trading 1,000 shares of stock which can be done instantaneously, art is relatively illiquid.
There are several private funds that invest in art and they have done well over the years. Art usually takes 5 to 10 years to have significant appreciation
I buy art for the enjoyment value and if appreciation happens, I consider it a bonus. I advocate that 5 to 7 percent of an investment portfolio should be placed in alternate investments, art can certainly be one of them if you will not need to access the cash in a hurry.
Like any other investment, the answer is research, research research.
Learning is defined as a change in behaviou. You haven’t learned a thing until you can take action and use it.