Art investment and collection
Art investment and collection
If we understand that the essence of art is about truth, goodness and beauty, it is not difficult to understand the influence of real works of art on universal values. Of course, in an economy without a complete evaluation system, the word “art” exists only as a joke, but in an professjinal term, it is a serious but interesting business.
In modern economy, many values are measured by money system, but the inflection makes the worth of money depreciate every year. So there must be a sustainable platform to hold the value. Gold, real estate, oil and original artworks were relatively taking the job. Now the blockchain has emerged in the digital era.
However, real estate is oversupplied, new energy is constantly up to stage, and highly polluting oil is gradually off the platform. If there is no computer,the blockchain is useless. It is really a good idea to invest on arts. Hwever there may also be risks. Not all those claimed arts are real ARTS. Time is need to learn more about these issues.
Investment in art can not only improve the quality of life, but also represent more captial meaning. Some returns can not be measured by quick money. When the art market has become a hot investment frenzy in the world in recent years, it shows that art has the function of preserving value.
Painting and sculpture are art works that collectors often invest in. For powerful investors, they can maintain the value of their portfolio. Like stocks and bonds, works of art can increase macro capital value, but art is a long-term investment, and profits from works of art will not come overnight. Therefore, it needs long-term planning, and it is suggested to have ten years or more of patience to qualify as an good art investment. For example, in many countries, the inheritance tax is very high, and some art investors list contemporary art as heritage planning as assets passed down to next generation.
The art market has been operating according to a unique set of rules for hundreds of years. Arts lasted the war time, when everything was destroyed, the value still survival. The main advantage of art as an asset is that its value does not rise or fall with the stock market. Especially when stocks are underperforming, the art investment market is doing well, which is a good thing for smart investors, because diversification can minimize risk. Although not 100%, in an ideal situation, with the passage of time, those who can be called works of art will continue to keep their value, that is the value counted by money system of that time.
Preparation for investment Art
Every work of art is unique, and the art market is as volatile as other markets. Because it is impossible to determine the value of works of art for the time being, which largely depends on the reputation of artists and the current overall economic situation, it will bear certain tests just like the stock and real estate investment. If you want to invest in art, first determine how much budget to prepare. If the artwork depreciates for a while, it should be affordable. Don’t forget to consider possible value preservation functions, as well as the help of some social influences. If you know more about the art world, visit local galleries, see what materials they can provide, and chat with curators, you will usually get professional answers, then the investment in art is likely to rise again invisibly. If you are in or near the city, you can attend the opening of galleries and art exhibitions, where new artists often display their works. If you have time, you can learn more about how the market works.
If a promising artist can maintain a successful professional level, the cash value of his works will rise in a straight line. The annual report of the Basel Art Foundation estimates that the global art market sales in 2018 will exceed US $67 billion.
Once a work or artist catches your attention, you can start narrowing down your research to see specific works of art. You can also entrust art experts with the latest price information. In addition, there is the share of art purchased through the online market. Because this is the information age, many high-end art products can be sold online. However, before you buy online, make sure you buy from a legitimate Gallery, dealer or investment company.
For most investors, art is only a part of the overall investment portfolio, and may make profits, but it is difficult to obtain fixed income only by art, which is regarded as an additional real estate investment. Do not rely on art investment to obtain stable income. Art has a high monetary value, but it is not current cash, and it is not easy to turn into cash immediately, so it is not speculative Assets take longer to show value.
Time to invest in art
This is some experience where returns may outweigh risks, and most art investors start with collectors. If you like to go to galleries and look for fine works of art that can add points to your home, it’s a good thing to turn this appreciation into an asset! However, if you don’t like art itself, other investment options can also provide better services.
If you don’t want to be a collector and start investing in art directly, or want to keep the value of the art you collect, it’s very important to know more about the art world and communicate with people with professional knowledge.
Even if the income return will be considerable, but do not expect regular cash recovery, so the best way to invest in art is to first consider aesthetic pleasure, then consider economic benefits. But don’t plan your future finances around making those profits, and take the time to study the long-term value of art. But choosing high-quality information is like investing in the stock market.
Bi Yifan, a curator who has been in the art field for more than 20 years, can provide comprehensive art consultation
Consider artists who create works
Whether their works are included in any museum or famous collection, in addition to the international circulation of art works, whether they are awarded or otherwise recognized.
Although new and cutting-edge artists may be sought after for a while, their reputation is related to the sustainability of their works, which will affect the future value orientation of their works.
The art world represents the vast diversity of human beings, so we should narrow the search scope according to our intuitive preferences, choose the types or time periods of interest, find experts to discuss, and suggest cooperation with art consultants or companies specializing in art business. Here are some ideas.
When determining the fair market value of a work of art, ask experts to help you in a favorable way to ensure that it is worth it.
The price of the original or a certain type of art classic is the highest and the potential income is the largest. Print or copy is affordable but less likely to be profitable. High quality digital printed version of the original works, similar to the printed works, but at a higher price. Usually, rare prints are more valuable. A small quantity of printed matter with limited distribution has greater value than a large quantity of printed matter.
Mass or unrestricted reproduction is the most affordable option for the public, but it is also worth the least, and it is impossible to make any profit from it.
You can invest in art in a highly competitive art auction environment. If you are lucky, you can win famous masterpieces. Note, however, that auction houses usually charge some royalties in addition to the bid price.
What is a good art investment
If you want to guarantee the return rate of your investment, or if you don’t have any extra funds for scheduling, it may be better to skip art options and return to liquid assets, but the lack of interest in life is conceivable. But if you are passionate about art and have enough assets to enjoy the experience, for confident investors, this investment may be one of the ways to diversify your portfolio.
With the vision of art and the willingness to take risks, new or experienced investors can find that art collection and investment can obtain many incredible social returns. Although art is only a part of the overall operation, it can well drive the market value of other investments. In today’s developed countries in Europe and the United States, art, whether for individuals or enterprises, has become an invisible force to drive economic development. For those who grow up in developing countries, if they want to transform the thinking of international OEM, become the main force leading the industry, or lead the international makers, art investment will be a good starting point.
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