Is art a good investment? Only if you know the techniques of the very rich collectors who do it well.
For many investors who are seeking alternative investing opportunities, the art market has become too large to ignore.
A few wealthy art collectors with acumen have been able to make eye-popping returns.
For instance, John Magnier, the Irish horse breeder, got $150 million for an Amedeo Modigliani painting at Sotheby’s in New York recently, a work he bought for $27 million in 2003.
According to a UBS and Art Basel report, global art sales in 2017 reached nearly $64bn. Since 2000, the Artprice.com index shows that art investing has produced an average annual return of 8.9 percent.
However, the key to success in the art market lies in avoiding the pitfalls and having a knack for the fast changing tastes.
This has drawn the interest of new collectors to invest in this unique asset class. What makes art a good investment is following three basic rules.
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