Art is an Asset class. People buy art not only for hobby but they basically invest in art. An art is the Investment vehicle. Owning an art is just like owning any other asset such as Stocks, Bonds, Gold, Real Estate, Mutual Funds, Businesses and any other asset.
But well, investing in art is not as simple as walking into a gallery and picking out the piece that you thought would look best on your living room wall. It’s the job of an expert. Only the collectors and real art experts can pick up the classical art from the large collection of art pieces.
Do’s and Don’ts of Investing in Art -
- Choose historically significant pieces of art
- Take time to do research into the exhibition and literary history of piece
- Do not go for Cheapest bet or by hearsay
- Remain invested for at least five years, to benefit fro appreciation
- Begin by investing only 5-10% of your portfolio in art
Just like investing in stocks, real estate, mutual funds and businesses, you do the proper research and after proper research only you invest in it right? The same thing is true for art investing. Here also you have to do proper research otherwise you will miss the great investment opportunity.
Remember: Art only makes sense as an Investment if it has a credible amount of historical significance. Without this no art wok should be contemplated.
The second factor you have to see is the Market. Most of the investors invest in paintings because there is a huge and liquid market for this. Thus, you will find a ready buyer for your art.
According to the experts, you can give 5-10% allocation of your portfolio towards the art. You can buy art either from art galleries or from Auction Houses.
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