Why Art is a Good Investment
Art has long been considered a valuable asset, both for its aesthetic value and as a form of investment. While the value of art can be subjective and difficult to quantify, it’s also been known to have long-term investment potential. It all depends on how and what you collect.
First off — the most valuable collection is one that speaks to you. You should always buy what you love, as opposed to what you think will appreciate in value. But in case you’re wondering how/what/if it will appreciate, we’re here to help break it down.
1. Potential for appreciation.
Like any asset, the value of art can increase over time. This can be due to a variety of factors, such as the artist's reputation and demand for their work, the rarity of the piece, and its condition. But be patient — you’ll likely only begin to reap any benefits for 10+ years.
2. Investment diversification.
Adding art to your investment portfolio can provide diversification and help to spread risk. This is especially important in times of economic uncertainty, as art is often less correlated with the stock market and other traditional investments.
3. Cultural significance.
Art can also be seen as a way to invest in culture and history. Some works of art are considered important for their cultural significance and can be seen as a way to preserve and celebrate the art and history of a particular time period or place.
4. Emerging artists for the win.
Interestingly enough, the art that is more likely to appreciate in value is by emerging artists, as there is a greater pool of art collectors willing to buy on the secondary market.
5. The risk you take.
Like any investment, you’re taking a risk. While art can potentially appreciate in value over time, it is not a guarantee. By buying art solely for investment purposes, there is a risk that the value may not increase as expected, or may even decrease. Buying art that you love allows you to enjoy it regardless of its market value.
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Coveted artworks by the top emerging artists from across the globe.