Post about "Performing Arts"

The Investment Value of Art

Whether art makes for a good sound investment strategy or not, is a question that has been asked over and over again for many years. The fluctuating market condition, economic recessions and different trends in diverse art forms constantly makes people wonder as to whether they should put their money in this market. In this article, we try to examine the investment value of art, current trends and the pros and cons of investments here.Investment trendsTrends of art sales over the years have indicated that its value has gone up. In fact, over the past twenty years, this market is noted to have performed much better than the stock market. Many auctioning stores like the prestigious Christie’s and Sotheby’s have an increasing number of art pieces today, thanks to their growing value and high fetching prices. Markets of 2008 indicate a high inclination towards contemporary art including pop art.The upside of art investmentTrends have indicated this market to perform equally and often better than even the stock market. Also, artworks can be displayed at home/office, adding to it the prestige value that is not available with stocks. Investment in arts is good as a portfolio diversification strategy, adding to your list of assets. Experts also add that this market is less volatile and much less sensitive to economic crisis and geopolitical issues. Finally, it can stand the test of time, be handed over to generations as a beautiful gift and can be shown off.The downside of art investmentArt collectors and sellers also need to be aware of the downside of this market. It is less liquid an investment as compared to money markets and can take much longer to translate into profits. Moreover, not all forms of art will get good returns. In times of economic crisis, though art will continue to sell, it is only that buyers will become more selective on what they buy. Current trends during the time of selling and the economic market will decide the prices of your art piece. Also little effort is being done to convert art into a security.For art sellersIf you are an art seller with prestigious or creative pieces with you, the best time to market yourself is now. People are on the lookout for good pieces of art that can be purchased at a low price and later on be sold for higher returns. The Internet is emerging as a strong selling platform and artist websites, forums and third party sellers are today available to advertise your wares.For art collectorsIf you are an art collector who does not want to invest large sums in art, start with small artists and lower priced artworks. Most importantly, collect art not for investment purposes only, but because you appreciate it. In fact, the market shows that high prices are paid for art not for their investment value but are purchased by the rich for enhancing prestige, ego or for fueling their passion of collecting. The value of art should primarily lie in its intrinsic beauty more than anything else. Just like demand drives supply, rates of pieces in demand go up with dwindling supplies.More than being a thing of beauty, art is today being measured by its monetary worth too. While this is a good indicator for art collectors, do not buy art just for the sake of making money. The primary purpose of art is to bring joy and add beauty, and investing on this can never go wrong.