Investments in paintings, works of art or, for example, postage stamps are an independent category.
Alternative investments also place considerable demands on the investor’s expertise. For laymen, art is to some extent speculation.
Investing in art is only for those who are familiar with it. Thus, the main pitfalls of this investment category can be easily defined. It is similar to real estate investments, for example. You also do not know in advance whether the value of purchased land or buildings will grow in the right direction and pace. It is to some extent a lottery. Even an expert can be uncomfortably confused in the case of art. Moreover, even clear investment types do not have to be successful. For example, the market situation or the interest of the professional public will change. The promising alternative investment will take over so quickly.
Art as a complement to the portfolio
Saving money in art should be a supplement for the investor. Not the main object of his investments. If you are hesitant about the most appropriate distribution of money into shares, bonds and, for example, term deposits, you will not be affected by art objects. Invest in the order of percent of your property in art. In addition, it is not obligatory to own an older thing, painting or other work of art. Even without the paintings of the painter František Kupka, it will still be you who has the money.
Art is also largely confusing because you never know in advance what will be of value in the future. Whether these are current paintings by unknown painters or photographic work by recent graduates of conservatories.
But one thing is certain. If you now buy a painting of the already mentioned painter Kupka, you have a higher chance of keeping the value of money in it. In contrast to investments in securities, you will only get a real return by selling it or lending it. The difference from the price at which you bought a work of art and the value at which you sell it cannot be estimated in advance, let alone determined.
However, there is an exception to this rule. These are art objects that you inherit or obtain in another free way. In this case, you realize the yield even when the selling price has decreased.
Alternative investment tips
We provide an overview of what can be considered as an alternative investment.
Antiques (furniture, toys, daily necessities)