5 Reasons to Invest in Original Art Prints
If you're starting your investment journey, it may be prudent to note that having more than one investment option is a wiser choice. A good investment option and a high-value alternative worth considering are artworks and original art prints.
As an asset, art displays excellent potential for growth. There's also a certain amount of security in art that other investment forms may be lacking.
But most of all, art is beautiful and has significant value that goes beyond personal wealth.
Understanding these benefits can help you as you delve further into the world of art investment.
Here are 5 of the top reasons why you should consider investing in original art.
1. Art Has Residual Value
Unlike stocks and bonds, which can lose nearly all value in a relatively short period of time, art is a tangible asset. As such, it has a residual value that can outperform non-tangible assets. In other words, an art collector who buys an original art print can rest easy knowing that it will always have intrinsic value.
You can always find ways to sell it, no matter what changes occur in the art market. Someone will always want an original art print as a token to hang in their home.
The best art investors will know how to choose the types of art that will appreciate with time. If the art market experiences a decline, you can still sell quality work for a good price to an art collector who knows how to assess its value.
2. Art Has Potential for Growth
In general, art increases in value as it ages. This is especially true of art that has been created by a deceased artist. Although an artwork’s value may increase throughout the course of an artist’s life and career, its value has a tendency to grow exponentially after their death because the art production itself has stopped and collectors scramble for their last original and one-of-a-kind pieces.
Art collectors who want to maximise the potential for growth in their collection can do so by purchasing art by a range of artists, including old masters and up-and-coming artists. Although the work of old art masters is always guaranteed to appreciate, collectors should assess carefully and consider more reasonably priced work from lesser-known artists that can generate big profits in the future.
3. Art Diversifies Your Investments
Every investor knows that a diverse portfolio is stronger than one that is not. When one type of investment loses value, another can increase which creates a safe balance. Placing too much money in one type of investment is too big of a risk that could result in disastrous losses for the investor.
It's for this reason that alternative investment options like art are becoming so popular. Art is separate from stocks and bonds. The art market is growing continuously, and the value of the art in that market is consistently appreciating as well. This occurs separately from the stock market and other factors that affect world economies.
4. Art is a Hedge Against Inflation
If you're a new art investor, you've probably heard the saying art is a hedge against inflation. Simply put, art maintains its value (or increases in value) as it ages. Whereas some types of investment may lose value, in part due to inflation, art appreciates at a rate higher than the rate of inflation. It continues to go up in value, even as inflation picks up traction.
5. Art is Beautiful and Worth Owning
Perhaps the most potent reason to invest in original art prints is that art, in itself, is beautiful. Art promotes joy, peace, serenity, and quiet introspection for the investor. In its time in the investor's possession, art can improve their quality of life, increases satisfaction at home, and gives them something meaningful to look at or think about.
The value of art goes well beyond the wealth that could be created by investing in art. Good art makes for a good life. Owning art is a privilege. No other type of investment has the potential to create the same personal reward the way art does.
Lyons Gallery: Helping You Find the Right Art Investments
At Lyons Gallery, we sell beautiful and high-end fine artworks to art investors all over the world. Our primary goal is to spread joy and happiness through art. Our works range from celebrity portraits to thought-provoking images from the most prestigious photographers and contemporary artists in the world.
In Australia, tax deductions for artworks are lower than ever so now is a great time to invest in a beautiful work of art. With the Australian government’s $20,000 tax incentive, every artwork with an individual value of $20,000 can now be written off 100%. This limit is applicable for every individual purchase (for businesses), which means you can claim a deduction for every artwork that you buy.
If you have any questions about art investment or about purchasing one of our original prints, contact Lyons Gallery today or check out available art on display in our online store.