Is art a good investment
Is art a good investment?
A yield of around 6 percent, where do you get so much money for your savings? On the bank not, with the purchase of shares not always and even precious metals are not loss-free. The value investment in art, on the other hand, has been highly praised in recent years and advertised with returns of up to 10 percent.
However, buying art as an investment is not quite easy.
Art comes from ability
Because art still comes from ability. So in any case an old people’s wisdom says it. Whoever invests money should therefore have a broad knowledge, no matter in what area. Even when gambling, you have to learn the rules before you sit down at a gaming table. This also applies to a visit to an online casino. In the meantime there is a casino bonus without deposit. So you can put the casino through its paces and also immediately achieve first real money winnings. Among other things, you can familiarize yourself with the different games and rules without any risk and experience the fun of the game first hand.
Art as an investment [Photo: HarryFabel, pixabay.com, Pixabay License
More than bare numbers
You should also familiarize yourself with the art scene before acquiring works of art. Even if you decide to invest in an art fund on the stock market, you need to know how the art market will develop in the future, which artist will make it to stardom and who will disappear from the scene again after a brief flash of fame. Beginners should therefore better look for an advisor.
If you want to build up an art collection, there’s no getting around an expert. And yet one should not base the decision for or against a work of art solely on hearsay. The painting, the sculpture should please one. Because in addition to the pure work investment, art also has an aesthetic side. It makes no sense to get a work of art into the house, which does not give you pleasure. That is just the beauty of investing in art.
Whether savings account or stock fund, you always see only bare numbers. With art it is different. You see a landscape, a still life, a portrait, or an abstract painting that appeals to you. It must be a pleasure to keep discovering new details and to get to know the artist in all his facets. You need to develop a personal relationship with the work of art, then a possible financial loss is not so heavy weight.
Weighing up the opportunities and risks
The art market is not completely independent of the fluctuations of the stock market. Among the share investors there are always also collectors. Their behavior on the art market is determined not least by whether they are currently winning or losing money. The same applies to art funds. Scientists have found that the return is often overestimated and the risk underestimated. For example, paintings by well-known artists are often auctioned off and thus achieve an ever higher price. On the other hand, as a rule, only works of art whose value has increased in the meantime come up for sale. These values flow into the indices of art funds and are then also adopted for works of art that are rarely sold.
Ultimately, it is with the value investment in art just like with shares and precious metals: They can be worth much more in a few years, but not necessarily!