Investing in art: how to have fun and win more?
Investing in art is an excellent, fun and sometimes lucrative way to diversify your wealth, but you still need to know how to do it. Although it may seem complex at first, since the estimation of a work of art is always a little subjective way, so no data in the long run, you will know how to get out of it.
Investing in the artwork avoids political, financial and fiscal uncertainties. It also offers several advantages to the investor if he respects certain principles and rules. This practice is becoming more common, whether investors have tastes in works of art or not. But we must still note that most of them do it out of passion .quality abstract paintings this is the best deal.
Investment in art is a safe haven, unlike stocks and bonds, for example. It is not affected by inflation, market performance or the catastrophic fall in prices of financial assets. On the other hand, the cultural dimension of this type of investment makes the investor proud of his collection, even if his value has declined.
Wealth management specialists advise investors to own works of art in their portfolio. For this, the recommended percentage is 5 to 10% of the total value of their assets. Do you want to invest in art? This article concerns you.
Investment solutions in art
You do not have to be a millionaire to buy a work of art. So you can indulge yourself with a minimum of funds, and your artwork can even grow in value over the years. But if your goal is to make a lot of money, the risk will be greater. Indeed, it can happen, but also suppose that you have the flair to be able to choose a beautiful work of art and to guess what the big buyers will want, these people who make the rain and the good weather of the market of the works of art.
Know that a painting brings nothing, except the pleasure of the eyes and the gain realized on the added value obtained on its resale. This surplus value is also subject to tax and social security contributions.
The art market
Investment in the artwork has been on the rise in recent years. But if record sales of this kind are exceptional, specialists agree that the art market is currently doing very well. It is stronger today than ever, and marked by more liquidity. He is also more selective by really preferring the magnificent works to those that are less good. But the market has also become widely democratized. If there were about 500,000 collectors in the post-war era, that number has grown to 70 million with collectors scattered across every continent.
Among the reasons that have led to the development and support of the art market, there is the growing number of museums that have opened their doors. In fact, there are about 700 international museums that appear each year, more than two-thirds of which are located in China. And it was noticed that there were more museums that opened their doors between 2000 and 2014 than between the 19th and 20th centuries. However, to attract visitors, these new museums are ready to put the price to buy the best works, and in large quantities, even to pay millions of dollars.