Tuesday, July 28th, 2009 | Author:

ahmed_alsoudani_art_investment_assetInvestment in art has hit the dirt big time. Big shot names and industrialists are betting big on wonderful art works. Recent spike seen in the art auctions duly points to the conclusion that art market is here to stay and flourish. No wonder, from big corporate to small time investors are trying their hands at lucrative world of art. Try revisiting any art auction having taken place in last one decade and you will find astronomical sums of money being doled out for amazing art works. Indian artists like M F Hussain, Tyeb Mehta etc have made it big in art market. There is huge demand of works made by them.

 

But, in this mad rush it would be prudent to take notice of one fact. Greed and fear are also attached with investment. One mistake most of the retail investors are making is investment in cheap art works. They think it’s a wise decision and their investment will pay rich dividends in the long run. But that’s a fallacy. Basically, when it comes to art investment, two factors are always there. One, when a person buys a cheap art work thinking of it as a good beginning and second, assuming that just because an art work is getting sold for some discount, it must be good. What they fail to notice is if the art work is being sold for less price or for some discount there must be some reason behind it. It’s okay to purchase a cheap art work if the purpose is to hang it on the all but for investment purpose, it can be a terrible mistake.

 

Give your art investment as much importance as you would to your other investments. Go for a good and quality art work even though it comes costly because you are bound to get good returns in the long run.

Category: Art Market
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