Saturday, May 15, 2010
STRATEGIES
Strategies
The predominant number of collectors don’t think of an alternative investment, thus of art in place of an investment of funds, but wants to acquire works, which fit their profile and at the same time hold their value or rise in the value. As a material value it should be handled with care. All the best strategy will be orientated on a long-term concept. Who acquired end of the 70's for example Beckmann or Kirchner, an immense increase in value experienced. The same development can be seen for contemporary art of the 70’s: The Black Marilyn silk screen by Warhol, once sold under 1000 $, obtained to 30.03.2010 in London more than 200.000 GBP.
Short term transactions, i.e. in one period of approximately 3-7 years, can throw also considerable profits off, require however special technical and market knowledges - and above all entrance to particularly favorable sources for the purchase. It is valid to note with works of art, that contrary to shares or loans, similarly as with real estate, a sale is to be converted not within a dail into money-currency. A completion can last between some weeks and months for the broker up to one year in the auction trade.
A the estimated investor will get advise from his bank broker he should think about advise of an experienced art expert. Experts such as ArtExpert, ACF kind fund trust, USB kind banking or Deutsche Bank art advisors guess/advise meanwhile, if possible, to direct art acquisition and/or work of artwork-referred fund investments. Indepence in advisory and deep knowledge could give additional security to the collector as well as to the investor.
Note: You have to think about this maxim. Take only the best to invest your money.
Decision
Decision basis are often the market data, which can be read partially in the internet or art magazines and the economic features of daily papers. Even the layman can in-select itself by mouseclick within a few minutes into the world-wide offer of the dealers and auctioneers, proof offers and compare prices.
Special software offers analyse of the market situation and of the price history of an artist. The availability of so many data could favour the entrance of new investors by getting a first overview . Practice shows however that a successful investment depends still on resuming information and in particular it is important to recognize future trends. A further, not underestimating aspect are the special fiscal advantages, which exist in the most countries.
Security
A work of art can vary in the price, however its value will never completely lose. And especially in times of crises very important: a artwork is mobile, as well as the sale conttract doesn’t depend from the place , where the artwork is stored. This is very different to currency and bank papers, which will loose it’s value by higher politicalman economical interesest. Annually very much money at the stock exchange is lost. The risk of wrong art investment can not be compared . Even frauds are really a very high risk , probably not more frequently than in the museums stocks. A network of experts, brokers, specialist dealers and auctioneers supplies large security before unpleasant surprises and the network of the big insurance companies, the Art Lost Register, gives information over the fact whether a work of art is possibly as stolen registered or is otherwise burdening.
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ReplyDeleteGood blog posting ! thanks for sharing....
art investment