Art Investment is NOT THAT RISKY!!!!

By On April 16, 2007 · 2 Comments

Art Investment is NOT THAT RISKY!!!!

 

safe Art Investment is NOT THAT RISKY!!!!

I recently came across a list of possible risks of investing in art which when analysed don’t really pose that much of a risk at all. The list of possible risks was as follows:

 

 

1.Possibility of owning/selling frauds and fakes

2.Illiquid auction/dealer markets.

3.Maintenance, restoration costs.

4.Artworks produce no income unless sold.

5.High transaction fees.

 

 

After considering these possible risks I have commented on each below:

 

 

1.The possibility of owning/selling frauds and fakes is a possibility if you do not take precautions and do not do your research before purchasing. If you do your due diligence beforehand this will not be an issue.

 

2.Art investment is recognised as a long term investment therefore you should be aware of this before you invest so that you can allow for the possibility that you can’t instantly liquify the asset.

 

3.Maintenance and restoration costs shouldn’t be an issue as any artwork that you buy should take into account those costs and be priced accordingly. As long as art is looked after it should require money to be spent on maintenance.

 

4.Artworks can produce income if rented out to the corporate sector as explained in previous post

 

5.It is true that auction houses and galleries do have charge quite high rates when selling you work so it is advisable to take this into consideration when looking at buying and selling a work. There are other less expensive ways to sell your work which will be looked at in future posts.

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Related Posts:

Related posts:

  1. An Introduction to Art Investment
  2. Art Investment @ www.artmarketblog.com
  3. Art Market Analysis: Vintage Posters
  4. What to Expect When Investing in Art
  5. Art Market Analysis: Influences on Value
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  • http://pereiradasilva.wordpress.com/ pereiradasilva

    Put plain and simply – recognition and/or communication with a public audience is what is sought when an artist works. Would an individual want to be recognized as an artist without consideration taken of the value of the work? Or again, put plainly, do they just want celebrity status for having work on display? Probably not, or at least that’s what most would claim. Most artists want their work to be evaluated by an audience and found to be worthy of entering the common memory (for whatever period of time) so art plainly has to engage with the audience at some point in the exhibitive process.

  • yeswrlc

    Hello I read your blog everytime I can, thanks for posting…I am interested in the last sentence of this post.” There are other less expensive ways to sell your work which will be looked at in future posts.” can you reply the link or the name of the post you are mentioning.
    Thank you.

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