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Wednesday, April 27, 2011

Is Art Good Investment for the Common Man?

Art for ages has been the forte of elite and upper class and there is always discussion regarding art buying and selling among these groups. As of now art has become affordable and one can buy art from new and emerging artists at a very low price. Art prints also are offered at less rates compared to original paintings and because of this entry of art prints in the art market even the common man is able to purchase and display art in their living rooms. Let us consider art for investment for the common man in this post.
Investment is of priority list in the minds of many. We always want our assets to multiply and the sooner they give financial benefits and returns the better. Art since ages have been known to give good financial returns and many art investors are on the watch to keep buying artworks from reputed art galleries or even online art galleries and auctions. How will this benefit the common man?
When we purchase shares and fixed deposits we all know that we get a certain interest on that and also other benefits in case the process of shares shoot up. There is always a risk factor in other investments like shares, Fixed deposits, paper gold and other assets. One can only judge the market but not be sure of the returns. The whole economy and financial stability depends on the country and their inflation rate. This field is fluctuating and investments need to be kept a close watch for high's and low's in profits.
Not so with art. Though I can tell that the returns are not immediate and people who want immediate returns must opt for the former means of investments. Art is a slow progressive investment but  a much better one if you do not want immediate returns. Think of it as a long term investment and always buy art only according to your budget. Consider the amount you need to invest and then go in for purchasing art within that budget, It is very often noted that there is a tendency to go off budget since buying art is an emotional decision and one may fall for a costlier artwork even when the budget is predecided during actual purchasing of paintings.
Many art dealers and investors purchase art from new and emerging artists at low prices and store them for a few years. When the same artists becomes a known figure in art circles the prices of their artworks shoot up and investors may have sales, auctions and exhibitions of their art collections and get very good returns.
Same holds true for the common man. Buy art from artists who are at the beginning of their career. They may offer paintings at  affordable rates as compared to established artists. Here you would get the opportunity to display art in your homes as well as consider this as a heirloom for future generations to come.
As other investments mature so also art rates will keep on increasing over the years.And as compared to other investments there is comparatively low risk factor, only for unexpected accidents , like fires and floods!
When considering art for investment one must think carefully about this and do correct home work before buying and paintings. Consulting art dealers, gallery owners, art brokers and different artists will allow you to get the true picture regarding art sales and purchase of paintings. Like other investments this is also a planned move, the only difference being that art gives us an aesthetic experience which would remain with us forever, a treat to our eyes and a food for our soul!

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