The art market has recently gained an additional dimension, that is, the investment dimension. Slowly there is an offer addressed to individual investors interested in investing in this segment.
Investments in art allow for additional diversification of the portfolio. According to the old stock market wisdom, investing more importantly than multiplying capital is giving up before losing it. Diversification of investments means both the acquisition of a variety of assets within a single market and the acquisition of assets listed on different investment markets. Normally, in this context, investments in stock markets, bond markets (state, municipal and corporate), real estate, and precious metals, mainly gold, are listed.
As history shows, works of art are one of the best carriers of material value, and investments in art are among the most secure, especially in times of crisis and turmoil. Works of art are not victims of bankruptcies of states and companies (as is the case with bonds and shares), and their uniqueness is a superiority to gold – a precious metal and regarded as an effective carrier of material value, and yet extracted in increasing amounts as new discoveries mining and development of mining technology. Historically on the art market, an upward trend can be observed, and the emergence of a new, large group of wealthy people in countries with large populations such as China and Brazil, suggests that the art market is poised to grow further.
An individual art investment (the acquisition of a work of art by a natural person, and then its resale) may be beneficial in terms of taxation. The barriers to knowledge, the amount of investment and the risks associated with artwork may turn out to be too great for individual investors. The entire investment offer on the market (existing or announced) consisted of the following elements: offers of special purpose vehicles investing in art, offers of funds investing in the art market, investments based on art works, art-banking investment offers.