Women are passionate about any thing that appeals to their aesthetic sense and a piece of art is no exception. So why not explore an investment option that you can use to beautify your house with rather than the shaky stocks markets and the perilous property markets.
"Art is the only commodity other than gold which is constant in giving steady returns from the very beginning. Art can make its own money over a period of time," insists Neville Tuli from Osian, one of the leading art auction houses.
Is Art the Right Investment Option for Me?
Art seems to be making a huge come back due to the largely volatile markets and low interest rates on returns which are both a byproduct of the worldwide recession.
If you are an art connoisseur already, investment in art would not simply mean succumbing to a passion but would bring with it an added advantage of future returns. If not, it’s never too late to indulge in art.
The art market is booming at an astonishing 20 percent per annum. Studies have proved time and again that art seems to hold demand both during an economic boom as well as slowdown. The mushrooming of numerous art auction houses during the past decade has provided more liquidity to this investment alternative. Today, art can be looked upon not merely as an object of pleasure but also as a lifelong asset.
How do I Master the Tricks of the Trade?
Here is a list of a few facts that you ought to know about art investment before leaping into it in a big way:
• You cannot examine the balance sheet of a work of art, so buying and selling an art piece is not as easy as in stocks primarily because it is difficult to value an art piece objectively, which makes the art market quite illiquid.
• The art market is largely unregulated. It hence becomes important that you carefully and observantly verify the credentials of the owner as well as the history and condition of the art piece before saying adieu to your money. Best still, deal with only the reputed galleries or dealers.
• A novice can always rely on the help received from independent art advisers and also those working for private banks who can lend you a hand every now and then by advising you on how to choose and manage a collection of your own. But it would be in your best interest if you can yourself do some leg work. Art-train your eyes by frequenting visits to art galleries and fairs. The student shows and exhibitions should be a good place to start from.
• Get in the habit of doing some net practice. Well, most galleries have a web site, keep frequenting them. Some web sites that might come to your aid are - www.britart.com and www.arttactic.com. These provide great information about sale prices and some really useful tips for collectors, both old and new.
• Fashion is an important determinant of the value of the art piece you possess. Just like clothes, art too moves in and out of fashion and their prices follow.
Does This Option Require a Huge Investment?
Investment in art might require you to shell out a massive chunk of your savings and the gestation period for the profits to realize too could be a long one. But how much you will end up spending in order to own a piece of your choice basically depends on whose creation you have set your heart on.
So, the best mantra is - ‘Do not expect too much too soon’. You should be ready to wait for a couple of years before the returns could come. As Karl Schweizer, head of art banking at UBS, the private bank, says, "Investors in stocks and shares want to buy at the lowest price and sell at the highest. With art, it is more important that they love a painting or sculpture and get an emotional dividend from it." So, you see, the very purpose of investing in art differs from that of stocks.
The Best Part About Art Investment
Although there is no guarantee that the prices will continue rising, but ladies, you will at least have the satisfaction and the pleasure of adorning your walls with a rare and unique piece of art and, of course, the chance of calling yourself a collector. Now, who can miss upon that opportunity?
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