Art as an investment avenue can be an interesting and profitable alternative, but it can, like any investment, be risky.

With poor stock market returns and very low current interest rates, the worst in decades; nervous investors are now looking at alternative avenues in which to invest.

The performance of art as an alternative investment can be alluring. Indices tracking the performance of art have held up well against the current slowdown, while some art auctioneers report record prices.

Art consultant Virginia Wilson says, "Art has been an attractive investment for centuries and is becoming increasingly recognized as it has outperformed more conservative investments over the last few decades. It is an alternative investment earning capital gains rather than a dividend."

The difference between art and traditional investments is that in most cases, art does not pay a dividend until it is sold. Although in some cases, art may be leased to corporations (or individuals), thereby creating a return for the investor prior to sale.

Some artworks have appreciated enormously in value over time and like most investments, time is the biggest factor in the growth of its capital value.

Advocates of art investing argue with the growing volume of supporting analysis. Among Professors Jianping Mei and Michael Moses, at New York University's Stern School of Business, have found that art has outperformed S&P 500 in the past 50 years.

But over the long-term - experience suggests 10 years and more - investment in art provides annual average returns, which exceed almost all others.  The prerequisite is to invest in high quality art.  That doesn’t mean we have to invest in Picassos, Rodins or even Blackmans or Boyds; a good quality painting or sculpture from an established or a truly ‘emerging’ artist may do perfectly well and long term may provide a satisfyingly good return.

There are now a far greater number of new and old investors looking to invest their money in art.

Please talk to us if you’re looking to include art in your portfolio.  We have ‘traditional’ investment art pieces from time to time and we have a range of established and emerging artists for your consideration.