Art collecting is an attractive source of alternative investment and diversification. If you have ever invested in property or shares then this may be the most important message you will ever read. Buying art offers some amazing benefits.
According to Art Trends 2011, a recent report by renowned Artprice.com, the first half of 2011 saw art prices climb 17% above the 2007/08 levels1. Furthermore their data suggests that in the 10 years between 2002 and 2012, the international art auction market rose by 110%. The global auction market itself rose by 21% between 2010 and 20112.
You can rent out your art and generate income returns of up to 10.25% per year rather than just relying on a potential increase in value.
Most markets are driven by confidence and when a group of investors lose confidence, such as in the share or property market, the price drops. This market is less likely to lose its value overnight because it is not subject to day-to-day turbulence that plagues many other asset classes.
Not only could art investment potentially generate returns, it's sustainable and supports social / cultural values while also giving people pleasure.
Supply & Demand:
With most assets, you can increase the supply to meet demand. But in this market there is only one source of supply which means the supply / demand quotient works in your favour.
Are you surprised? Most people are! After all, until recently, investing in art has been limited to high net worth individuals but that's all changed and the entry level amount for an art portfolio with Art Index is typically around 10,000 - 15,000 AUD.
And that's why we have created this special report "What Every Investor Should Know About Art" which reveals what everyone should know about art investment. Get yours now by entering your details in the box below and you will also automatically go into the draw to Win a $10,000 Art Investment Portfolio!
1Art Market Trends 2011 by Art Price – based on graph on page 3, information on page 25 and a general synopsis of the report. Please contact Art Index if you would like a copy of this report.
2Past Performance is not necessarily indicative of future performance.