Investing In Art For Money Or For Personal Appreciation?

Throughout human history, people have always appreciated art. Personal art collections are built by the wealthy for their appreciation and at the same time as a form of investment. It has been known for some paintings to appreciate in value after decades. While most of the remarkable paintings of the past centuries are displayed in museums, there are still fine works of art kept by private individuals as part of their personal art collection.

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Art always deserves a place in our homes even if the interest right now is to acquire art for investment purposes. New breeds of art collectors have an eye on the future financial benefits although they are also attracted by the allure and prestige of owning a rare and original piece of art. Even Amazon and eBay have a dedicated marketplace for those willing to buy or sell art because of the sudden interest from new buyers.

Acquisition of a piece of art is beyond prestige because an investment can deliver good returns. Based on Knight Frank’s 2014 Luxury Index Report, art has surpassed other exotic assets like coins, stamps, wine, jewelry and antique furniture because the performance of art an investment asset is 226%. Investors use art to diversify their investment portfolio because art is not volatile. Besides that, a remarkable piece of art can be displayed indefinitely and passed on to the next generation.

A 226% ROI can be irresistible to some investors but it is also important to consider that tastes may be different a few years from now. For example, the abstract you purchased a decade ago might not meet the modern taste of present day investors. It is important to approach art investment with caution because if there are benefits, pitfalls are not too far behind.

If you are serious about building an art collection, Parniani’s Fine Art is your best source for 19th century and early 20th century paintings. Aside from rare paintings from the masters, there are watercolors, etchings, sculptures and oil paintings that will provide you great value for money. Some of the paintings are worthy of preservation because they record a certain time and place in history.