introduction to art investingIn a rapidly evolving global market, many investors are diversifying their investment portfolios by exploring different kinds of asset
Art investment has become increasingly popular because its value increases as it ages or gets rarer. In the last two decades, art has transformed into a valuable asset with potentially significant investment returns.
We’ve seen so much growth in the global art market in the last few years with art collectors and celebrities drawn to own the original work of emerging and established contemporary artists. From private individuals to businesses, art patrons liaise with galleries and consultants, spending a great deal of their time looking into the works of artists from all over the globe in the quest to find original prints to add to their own beautiful collections!
With proper guidance from art curators and institutions like The Lyons Gallery, you can now find one of a kind or limited edition artworks and prints that are perfect for you.
Why Should you Invest in Art ?
Invest Art Blog Section
Art Investments Are Tangible Assets
Art is becoming increasingly popular as an investment asset and so much so that people are now investing in art more than wine, according to the wealth report by real estate firm Douglas Elliman.
The average value of art sold at auction rose by a significant 21% within a twelve-month period. Compare this to other luxury assets such as investment-grade wine which took second place with 11%, followed by watches at 5%, coins and jewellery at 4%, cars at 2 % and stamps at 1%.
Placing your wealth in the art market for the long term for high-value artworks can be comparable to investing in real estate or luxury items, where value increases over time. This means that when you find the right piece of artwork, you become the owner of a tangible asset which, unlike some other investments such as stocks and shares, will always have a residual value.
Art Diversifies Your Assets
The global art market is, by and large, completely uncorrelated to the world’s major stock markets. This means investors can use art investment as an excellent portfolio diversification tool in times of economic uncertainty.
As per Deloitte’s Art Finance & Finance Report, some banks today are already offering art investment fund products to their clients. 43% of art professionals also stated that art investment funds were relevant service for their clients.
You might not be rubbing shoulders with the world’s greatest artists right now, but if you aspire to collect, then art can be a gateway, not only to becoming a custodian of culture in this country but to being a law-abiding taxpayer who is trading incredible art for tax breaks!
Enjoy Up to 100% Tax Deduction on Artworks
Now is the best time to invest in art so you can take full advantage of a 100% tax deduction on the purchase of artworks for your business. For small businesses with a turnover of less than 10 million, art purchases for your business can entitle you to a 100% tax deduction allowance to spend up to $30,000 (per item). The $30,000 limit is the maximum tax deduction for any single purchase but you can make as many purchases up to that amount as you like.
Art Has Significant Growth Potential
When isolated, the contemporary art segment of the mei moses art index, an analytic tool based on price information for objects that have come to auction, reveals that contemporary art has delivered a compounded average annual return of 10.85% per annum between 1966 and 2016.
Art Is an Emotional Investment
For many years, art has been used to promote therapy. It sets the tone for living spaces and creates an ambiance of serenity and relaxation wherever it is displayed. Investing in a piece of art may not yield an income as it’s a capital growth orientated investment but your dividend is the complete satisfaction of owning your own piece of art and living with it hanging in your home.
Who doesn’t love putting prized possessions in the spotlight, as a focal point in a room and a novel conversation starter? Fine art purchases are also some of the most likely pieces to be collected for social purposes in your personal space.
Art Sets the Tone & Enhances Your Business
Displaying art within your business is a fantastic and instantaneous way to improve your space. Artwork inspires employees and greatly enhances the work environment. It influences your corporate image and speaks volumes about your business.
Art is an integral part of business presentation and operation for many of our clients.
We have delivered art to countless offices and workplaces over the years and have seen, first hand, the dramatic change that well-selected artworks can have on the work environment and the people that spend so much time there.
Art Is an Effective Hedge Against Inflation
In periods of rising inflation, art continues to do well throughout different market sectors. In fact, according to the Deloitte Luxembourg & ArtTactic Art & Finance Report, 73% of wealth managers have said their clients wanted to include art and other collectible assets in their wealth reports, in order to have a consolidated view of their wealth.
True enough, the returns you get from an art investment is significantly better especially with rising prices in the economy.
Are you ready to invest in art? Here’s what you need to know
According to Statista.com, the global art market was valued at almost 64 billion U.S. dollars in 2017, with the volume of global art sales reaching approximately 39 million transactions.
For art buyers and investors, art investment can lead to great returns when done the right way.
Having a good grasp of factors that influence the art market and having the information you need about the artwork itself is crucial to making a solid art investment that you can enjoy for many years to come.
If you’re ready to buy or bid on art or original
prints online, here are a few things you’ll need
Choosing the Right Art Gallery
Depending on your art of choice, finding the right gallery who can give you a well-curated range of original artworks or limited edition pieces of your preferred style or artist is crucial.
If you’re looking for original and limited edition prints ranging from modern art photography, urban art, pop art, and pop culture, Lyons Gallery Australasia may just be the right fit for you.
As a high-end Fine Art Photography gallery, Lyons Gallery specializes in celebrity photography from the most prestigious and collected photographers & contemporary
artists in the world.
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