8 Good Reasons Why You Need To Invest In Art

Many people enjoy having a piece of art in their homes and offices; this is because art is not only beautiful to look at; it also gives the place it is in a unique feel. Over time, the value of the piece of work increases, and you can sell it at a profit.

Financial analysts consider art to be a stable investment market. Compared to other assets such as gold, more and more investors consider art to be a value-preserving asset. Even with the economic downturn, the world of art continues to thrive.

Here are eight reasons why investing in art would be a good idea;

1. Diversity In Your Investments

When you diversify your investments, you reduce the risk of losing too much money. Think of it this way: if you choose to invest in airline stocks alone, you might wake up and find pilots and flight attendants on strike. It will lead to cancelations of flights, and the share prices will drop. You will end up losing a lot of money.

Professionals in the investment sector emphasize that diversifying your investments will not guarantee you will not suffer loss, but it will minimize the risks. Art is separate from bonds, and stocks endear it to investors. The value of art in the market is rising, which is not the case with the stock market as many factors affect it.

2. Art Is A Tangible Investment

People invest in art because it is something that they can see and touch. Although some people may have their valuable art pieces under tight security in the bank, some love to have them displayed in their homes and offices for everyone to see. They enjoy looking at the art whenever they can, as art promotes serenity, peace, and introspection.

The art will improve their quality of life and give them something beautiful and meaningful to think and look at. Investments such as bonds and stocks do not create this feeling that art is likely to invoke in a person. These feelings make some people hold on to their art for a long time. During this time, the value of the art keeps on increasing.

3. Art As Heirlooms

When you invest in art, you are not just buying for yourself at that moment. You are also buying it for your home, where it will be displayed, and for your family. You will have started a story of something that will be in your family for years. You will be the grandparent who bought the painting that will still exist long after you are gone.

Bequeathing art to your heirs is a sure way of protecting your wealth and preserving your art legacy. Your heirs will also give it to their heirs when the time comes. This practice will probably continue for tens of years to come.

4. It Has Residual Value

Unlike stocks and bonds, which can lose their value in a short time, the value of art appreciates over time. With stocks, you worry over how the events are likely to affect your shares; this is not the case with art. After you have purchased your art, all you have to do is wait like is the case with fine wine and classic cars. As more years go by, the value increases, and you can always sell it regardless of the changes in the art market.

5. Art Has Historical Value

Art has always been an excellent way for people to practice their freedom of expression. From the stone age to modern times, human beings have always used this freedom. Think of paintings in caves and on rocks from a long ago to the latest pieces of art that are on show in museums in different parts of the world. They allow us to know the history of humanity, and they help us understand other points of view.

6. Low-Interest Rates

If you want to take a loan, most banks will need you to provide something that will be collateral. International banks accept art pieces as collateral. If you use a house as collateral and someone else uses a piece of art or their art investment portfolio, your interest will increase compared to theirs. If you have to use your house or art as collateral, use the art. It makes investing in art an excellent way to build wealth.

Most of the people who are taking loans on art are using the funds to buy more art. However, there are companies such as Master Works that allow you to own shares of art pieces. It is becoming a popular investment opportunity for people who do not want to take loans to buy art. With the amount of money they have, they get to own original works by famous artists. When the pieces are purchased, they make huge profits.

7. Personal Enjoyment

If you love art, buy it. Look for pieces that make sense and mean something to you. They do not have to be the classics that everyone likes; find something that works for you. The same way you buy other things because you want them, while another person may not like that same thing, it’s the same with art. Unique pieces may be valuable to you and not to another person. Invest in what you want.

8. You Get To Nurture Emerging Talent And Established Artists

When you invest in art, you have time to meet the artist behind the painting that you like. You have a conversation with them at the private viewing or at the stands where their work is. During this talk, you get to know what inspired them, and you can tell them what your interpretation of the art is. Spending your money on their art will put a smile on their face, and you will leave knowing that you put it there. You can also commission a piece for yourself.

Investing in art has many benefits. However, before you decide to invest in a particular piece of art, do your research thoroughly. Verify its origin and if the artist is alive, get in touch with them. It will help you avoid buying something that is a copy of the original or a worthless piece of art.

Published by Larry Fire

I write an eclectic pop culture blog called THE FIRE WIRE that features articles about books, comics, music, movies, television, gadgets, posters, toys & more!

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