| The acquiring of art for business purposes | | | | brokering credentials are questionable at |
| has increased since the early 80's and has | | | | best. |
| kept pace with other investments and in | | | | |
| sometimes outperformed other investments. It | | | | To prevent fraud and also ensure the value of |
| is important for investors to remember that | | | | a piece, authenticating artwork with |
| there is a finite amount of artwork from | | | | documentation, or provenance, can be a great |
| famous artist waiting to be bought and sold. | | | | idea. An authorized appraiser can make sure |
| Therefore, more moderate returns on art | | | | the proper documentation is in order to |
| investments should be expected. | | | | determine the pieces true worth. |
| | | | |
| Art, like many other investments, can lose or | | | | Most new art investments aren't made with all |
| gain value quite quickly. Art is unique from | | | | the pertinent information at hand. Art |
| those markets, though, because the reasons | | | | investing is a business and it's important to |
| for a change in value are often unforeseen | | | | invest in that business aggressively. If it's |
| and objective. Unlike stocks and real estate, | | | | possible to invest more money in an artist |
| an art investor can't go to a single source | | | | premiere pieces of art, then that's what |
| and find out exactly what an art investment | | | | should be done. Buying a piece that an |
| is worth. | | | | investor likes as well as captures the |
| | | | interest of the industry is quite important. |
| As a business, art investing can mean quite a | | | | |
| return if the piece is held for long enough. | | | | Many critics of the business or art investing |
| Many investors new to the art buying industry | | | | might contend that art is entirely too |
| have been attracted by the advertising of | | | | unrealistic as an investment strategy. They |
| record art sales which have taken place in | | | | conclude that while stocks and other |
| recent years. A large return isn't | | | | conventional investments bring in a steady |
| guaranteed, but it's certainly a possibility | | | | income, artwork only becomes profitable if it |
| that's intriguing. | | | | can be resold. The profit resale value of art |
| | | | is never an exact science. |
| Besides giving some a very tidy return, the | | | | |
| business of art investing isn't subject to | | | | Acquiring art has quickly become a feasible |
| market fluctuations like other investments. | | | | part of a diversified portfolio. This is not |
| Buying art doesn't require as many fees and | | | | only the case in America, but in countries |
| related costs that, say, buying stocks does. | | | | worldwide. The Middle East and Far East have |
| That is an added benefit for art buyers who | | | | hosted investors who've completely bought |
| are already seeing higher than average | | | | into the idea of investing. As of late, the |
| returns. | | | | Austrailian art market has become more |
| | | | prominent as well. Many a multi-million and |
| The biggest downside to art investing as a | | | | billionaire foreign business persons have |
| business is not making the wrong acquisition, | | | | invested steeply in Western art antiquities |
| but becoming subject to industry fraud. | | | | and newer creations. It makes sense that the |
| Having phony artwork and passed off as real | | | | business of art investing intrigues so many |
| has lost art buyers millions of dollars. | | | | as the world economy broadens and traditional |
| Usually, the people passing off these | | | | investing becomes less sure. |
| fraudulent pieces are themselves frauds whose | | | | |