Why You Should Consider Investing in Art
One of the most common objections people have to investing in art is the relative illiquid (more difficult to convert to cash) status of the art market. Now I am not suggesting that art is as easy to convert into money as say shares but it is definitely not enough of a problem to prevent people from investing in art and it is something that can be rectified to a certain extent with the right knowledge (which I will provide).
As I tell anyone who comes to me for advice, you should not put all your money into art just as you should not put all your money into shares or property. Each type of investment has its own positives and negative points and by diversifying your portfolio you can balance out the negatives of one type of investment with the positives of another. Art investment is very similar to property investment in that it is asset based and is not instantly convertible to cash. People don’t turn away from investing in property because you can’t instantly trade it in for cash, instead people utilise the positives of investing in property and diversify their portfolio to include investments that are very liquid such as shares.
I could go on forever explaining the negatives and positives associated with different types of investments but instead I will do something more useful and provide you with an extensive list of tips and advice on how to increase the chances of selling an artwork quickly and also how to avoid the often large fees associated with selling an artwork. So for anyone who will ever sell an artwork, stay tuned!!!
**Nicholas Forrest is an art market analyst, art critic and journalist based in Sydney, Australia. He is the founder of artmarketblog.com, writes the art column for the magazine Antiques and Collectables for Pleasure and Profit and contributes to many other publications.