Fine Paintings and Art are much more stable than most stocks.
In 2013, the wealth of art billionaires was over $32 billion. During the last 4 years, it has been considerably increasing at a very fast rate. A great deal of transactions is strictly private. At public auctions you may get a glimpse of the prices, but most of the time the buyers and sellers remain anonymous and you only see the tip of the iceberg. The richest people in the world consider paintings and art a lucrative business. But not only that.
It is true, original paintings and art are for many primarily an aesthetic investment, not a financial one. But in times of crisis, they are a hedge against inflation and the tide or even the upcoming storms of the financial market. Nevertheless here the goal is the long-term investment, not the quick Dollar. It may well be that your children sell one or more of them later gratefully for a profit.
In the last two decades, the art market has experienced one of the most exciting periods of growth in its history. Of course, it is a very attractive proposition – that objects that you have purchased from aesthetic pleasure, to rise in value. Norman Braman, the 82-year-old sponsor of the ICA Miami made his nearly $ 2 billion as a car dealer. For several decades, he invested more than $ 900 million of it in art objects, resulting in making him the seventh richest art collector in the world.
The opinion that original art is a fine investment, equivalent to shares and bonds, is supported by a growing number of academic and other studies that focus on the power of investing in art when compared to other systems. The research tends to show that on the long long-term art investment is readily comparable with the income from stocks and bonds, and that the art market is correlated with the stock market, which means that art plays a potentially useful and valuable role in the diversification of the portfolio.
This is obviously not the case with contemporary art works, which as a result of currently high demand are often sold in a short time at a higher price. Collecting work by emerging artists may be the cheapest way to begin investing in art and with great hopes, especially new emerging artists of great promise with the potential to rise in value. This may be fine for the moment, but the risk also may be relatively large. Some fashion painters are interesting today, but may disappear from the market tomorrow. If you have the budget available, the safest investments are still original works by well known and documented artists. And even then you need to be careful.
Every piece of art from every period of the creator, to be considered a good investment must have true artistic value. In addition, investors should pay attention to a well-documented and authenticated origin and the history of the property, and take into account other considerations, including the object’s condition. Attribution is important, especially in the case of Old Master original paintings. Also the names of the masters of the works that we offer are known and authenticated.