I have heard about a lot of people investing in Art.. Is it worth it.. Is this investment only for the people with excess wealth or can this be see as an opportunity for an average citizen to make a safe investment ?
Investments in Art
| carl_fernandes wrote: |
| I have heard about a lot of people investing in Art.. Is it worth it.. Is this investment only for the people with excess wealth or can this be see as an opportunity for an average citizen to make a safe investment ? |
It is advisable for people with big fortunes. It is tax deductable on a percentage. Additionally, do you know how is it possible to value one picture around millions of dollars. Me not. So I am a bit scared of something that you can not value objectively.
Agreed. One needs to have a passionate interest in art, be connected with the right dealers and be very savvy for this to be a good way of investing your money. Also, the value of art may vary as during lean times, when there is less cash around, art may not sell well and prices will drop. So this is only a category for people who are already wealthy and need to park their money somewhere for the longer term, and with some tax benefits attached to it. Usually they will hold onto this and only sell when times are good and there is a demand for their art.
Like most anything, buy because you like/enjoy the art. If you decide to sell sometime, be happy if you make a little profit. Unless you really have studied, chances are slim for profit.
Art is only really worth what someone is willing to pay for it. It's difficult to buy something and expect a profit within a couple of years, because the face of art and what is desirable changes fairly rapidly.
It's a very rich mans game, and the only people who can really make money from art dealing are the people who don't need the money, and can afford to take a big loss.
It's a very rich mans game, and the only people who can really make money from art dealing are the people who don't need the money, and can afford to take a big loss.
Very much agree with Cuncha about art being (as with all objects large as a house to very small) being just what some one will pay for it. It also tends to be fashion based (just watch antique auction programmes on the box), some ceramic of the moment will fetch a huge price one day and a few months later when the market decides it has had its day, a fraction of that price. A piece of canvas with a few daubs of paint (just lookes like my grand daughter did it when she was 2), may be in someones eyes worth a small fortune, but to some one else his grand daughter really did do it!!
Buting art can be just as risky as playing the stock market or other forms of sofisticated gambling
Buting art can be just as risky as playing the stock market or other forms of sofisticated gambling
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