Art like it because it is a tangible investment, can be exchanged with any currency and provides an 'aura of prestige to those who collect (stocks and bonds can not be hung in the living room to show them to friends). Art today is particularly attractive because of the uncertainty in equity markets and the floating of currencies, the spectrum inflation, which stretches on certain countries and that of the deflation that threatens others.
On average, investment in art annnuo offered a yield of 7% between 2001 and 2004. Art can therefore be a refuge from inflation, provided that collectors be "aware" and prepared sufficiently to know the system and its mechanisms, to identify the names and works to bet on.
But there are also some pitfalls for investors. The artistic heritage are quite illiquid and prices are influenced by many variables: tight supply specification, change of taste and fashion, new directions of research, how often a given work is put on the market, and provenance - the most unpredictable factor - the behavior of collectors. Do not forget the time when the investment is made. The works of Damien Hirst, for example, have made more than 400% for those who bought in the late 90s.
- From "The Art Newspaper, September 2010, article by Charlotte Burnes
Read the original article (in English) on The Art Reader
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