Art As An Investment

Looking at art and investment in art from England, it is evident that this sector has much potential. The most common form of investment, apart from saving in banks, is buying stocks and shares of a company, in the hope that the company will grow and therefore increase the value of the shares. The main reason why many people invest in stocks and a shares in companies is because this is the area that can be fairly easily understand by the majority.
Over the ages many people have invested in art, or become patrons for a particular artist.
The reason however behind the caution around investing in art is mainly due to the lack of proper comprehension of the industry. Taking a closer look at the two sectors, one thing is rather clear that investing is always about speculation, and speculation can take place in anything that interests the investor.
It is all too easy to become emmotionally attached to a piece of art or the style of an artist. This can so often lead to the downfall of the work as an investment, as history has shown over time.
The greatest advantage however in investing in art as compared to stocks and shares is due to the fact that the value of the former never depreciates rapidly in situations of economic weakness as does the latter.
We can see this at present, in the current turbulent financial times, the 'top level' art by renowned artists has dramatically increased in value, even more so than gold, which is always reckoned to be a safe bet in tough times.
Work by British artists such as L.S. Lowry have seen the prices rise over the last few years to record heights. This is because the value of art is often quite distinct and must not be likened to other prevailing economic situations. While the stock market could easily fall overnight due to the mismanagement or closure of a major company in whose shares you may have invested, this is unlikely to happen when dealing with artistic work.
Economic crunches and political instability cause major falls in stocks and shares. The list of damaging factors that could negatively influence the value of stocks is endless. Natural calamities that can cause major chaos to the values of world class rated companies overnight.
However, we have seen the sale of a painting by L.S. Lowry 'Going to the match' which was valued at £500,000 six years ago, but achieved £1,900,000 at auction and has been recently been valued at six- ten million pounds should it be offered for sale in the current market.
If investment in stocks is a store of value for speculative purposes, it is highly advisable to invest in products that are not so vulnerable to risks. This is not to mean that there is anything that is absolutely free of risk but all that is required is to take on the less risky ventures and art and investing in art from England is one such option.
By studying the history of an artist, examining the change in prices of his or her paintings over the years. Looking at where the paintings are exhibited, both galleries and museums, and how much of the artist's work has been published. All these factors go towards the possible investment of a piece of art.

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