iNVEZZ on Investing in Art: Own Art, Enjoy it, Don't Expect to Make Money From It
Investors' portal iNVEZZ's Frank Quin recently released a commentary on art as an investment. With investing in art recently having received extensive media coverage, Quin takes a closer look at the phenomenon, coming to the conclusion that unless you have a deep understanding of the market or money to burn, art should be bought to hang on the wall rather than as an ‘investment'.
London, UK (PRWEB) October 29, 2012
Investors' portal iNVEZZ has released a commentary by Frank Quin on investing in art as a profit making enterprise. Quin introduces his commentary by outlining the vast sums that works by particular artists command, eye-boggling figures which no doubt pique the interest of observers hoping to catch the next up-and-coming artist and cash in by buying works early.
An example of the kind of success story that would be investors in art might be hoping for is given in Eric Clapton's purchase of a work by abstract German artist Gerhard Richter for somewhere around £2 million about a decade ago. Clapton recently sold the work at auction for £21.2 million, a record price for the work of a living artist.
Quin however quickly puts this particular success story in context. Firstly, the fact that he paid around £2 million originally shows that Richter was already an established and extremely popular artist, and not an undiscovered talent. There are not too many art fans who can afford a £2 million punt. Quin comments that picking out an as yet undiscovered artist in the hope that he or she will make the big league is a bit like picking the winning ping pong ball out of a pool of 10,000. And being able to judge whether the value of the work of an artist on an upward trajectory has yet to peak is almost certainly a game left for the experts.
The general thrust of Quin's argument essentially boils down to point that the odds of the average investor making the correct pick of an artist, the value of whose works will rise significantly, are too long to make investing in art a real ‘investment'. There is simply too much chance involved. The journalist concludes his analysis with the recommendation that art lovers by all means buy art, and if the value of their pieces sky rockets, then fantastic. However, Quin warns that it would not be the most prudent move to buy with this express aim.
The piece concludes with a quote by the writer and Forbes blogger Kathyrn Tulley:
So own art, enjoy it and maybe, just maybe, it'll make you money if you ever have to or want to sell it one day. But think long and hard before you buy art with that expectation, unless you are particularly wealthy, with plenty of cash to lose.
To learn more about iNVEZZ, join, contribute your own professional or amateur expertise on the investment areas of your interest or engage with other investors or experts, please visit http://www.iNVEZZ.com.
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