Fine art is something usually reserved for the very wealthy. Think of antique show rooms and galleries stuffed full of art pieces that no one really understand and in the midst of the bad markets and Brexit, there are investors out there looking for ways to invest in tangible assets that don’t rely on the unstable government to be fruitful. There is a growing trend in high net worth investing and this is to seek out asset classes with scarcity such as fine wines, cars and real estate. You have to ask whether art investment is the best next move. The art market itself has quickly rebounded after the last recession, with talent rising through the ranks faster than the traditional investments.
Individuals out there with a portfolio that diversifies into pieces of art were not as affected in the recession as others, and rather than investing into stocks or bonds, art provides investors with a tangible opportunity that is alternative to the market. Equestrian paintings on the market are popular for animal lovers and lovers of horses of all breeds and in times of high and rising inflation, art has historically performed very well across the market sectors. When there is a market that is uncertain, collectors of beautiful art pieces and paintings look to purchase art with an investment view rather than just to buy something gorgeous for the home.
Strategies for the modern portfolio dictates that investors should have some of their portfolios dipping into the art market. The low correlation of art to equities and traditional asset classes provides valuable portfolio diversification, which leads to an increase of overall returns. Art is historical as it is tangible and beautiful in its offerings. The value remains when the price dips and there is a prestige that is associated with art that will never change, even if the value ever did. Despite the data that is undeniably compelling on the art market, it is not a venture to be entered into without thinking carefully about it. You need expert advice and careful consideration when it comes to an art purchase and through art funds, investors have the chance to quickly and securely tap into that expertise and research which usually takes decades to gather.
You need the access to find the right opportunities in the art world so investment funds are the perfect way to enter into an art investment history. Investment funds provide access to new investors with an affordable minimum buy-in for the pieces that they wish to cultivate. Investors can then diversify their portfolio without the worry that their investment will fall to yield a return and take part in investing in a booming asset class. You should always think very carefully before you pour your money into an art piece as you need to consider where it will fit in your home or office, should you choose to buy art pieces for there.