Investing in Art during a Recession: A Wise Choice?
Posted: Monday, July 13, 2009
by Donovan Gauvreau
Aaron Art Prints
The
downturn in the economy is worrying many investors. Cuts to the
workforce are widening. The stock market is suffering as several
reliable companies that have been around for centuries are now
crumbling. This on-going phenomenon has levelled the playing field for
investments. Commodities that were not considered viable stock in the
past are slowly gaining attention. People are now starting to look at
investing in art during a recession.
Colleene Skinner is an appraiser on PBS's Antiques Roadshow, a popular TV program. She looks at more than 10,000 paintings a year, and provides a few tips to those who are considering investing in art during a recession:
· Educate
yourself – discover not only what you like but also art as a whole.
Take a course in art history - get to know the famous painters and the
various art styles. The more knowledge you have, the better your
decisions will be regarding what is popular and what will hold its
resale value.
· Watch
for local talent - many skillful artists are studying with fine
teachers and producing good work but have not yet made a name for
themselves. Regional markets are doing well with paintings.
· Buy
the best you can afford - look for the highest quality and stay away
from art work that looks worn and tired. No matter how good the deal is
on a piece, pass it up if its in bad condition.
Like other investments,
keep in mind when investing in a piece of art, that time is a critical
factor. You have to safe-keep it for a certain amount of time in order
for its market value to escalate.
Recession is Affecting the Art World
The international financial crisis has undoubtedly affected the field of art. For instance, the annual art fair in
Yet, there is a sense of uncertainty when it comes to the sale of paintings this year. Everybody is holding their breath.
Opportunities under Dire Circumstances
Popular pieces of art that have been off the market 
for
years have become available again during this economic downturn. It's
like a redistribution of fine art. The shortage of cash in many
businesses has caused owners to have to liquidate possessions in order
to keep their doors open.
For those willing to
do a little detective work, they may find that hard times have squeezed
out some valuable art pieces at affordable prices. For example, Arthur
Andersen, the accounting firm involved in the Enron scandal,
transformed part of their
Stocks or Art?
Art
as an investment has withstood the tumultuous economic situation so
far. It has been competing with, and sometimes beating, the stock
market returns. Stock holdings are being liquidated and used to fight
inflation, but somehow art investment has been holding steady.
Beautiful Asset Advisors, a firm which specializes in art investments
during times of recession, says the level of art buying is on par with
the art frenzy of the mid 80's.
Investing
in art during a recession should be approached cautiously, without
taking anything for granted. You could buy an extremely beautiful art
piece to add to your collection, but if it does not appeal to future
buyers, it will be a fruitless investment. That is the reason
collectors stress the importance of purchasing art for aesthetic
purposes first and value second.
About the Author: Art Historian, Donovan Gauvreau lectures about art therapy with a focus
on creativity development. He believes we can learn from the great
masters in art to communicate ideas and feelings through painting. He
provides content for www.AaronArtPrints.org
Donovan, thanks for the informative article. It's interesting to me to see how many people are looking into different forms of investment now that the traditional methods don't seem to be working.I believe during this time we're going to have to digg a little deeper and definitely get more creative about how we make money. Thank you for your comments.
Donovan-Thanks for sharing and explaining art investments. I have never really thought about investing in art-I can see how the industry suffers greatly during a recession. Keep up the good writing!I'm glad you enjoyed the article. By sharing ideas as a collective on how to make more money during this economic crisis, we will not only MAKE IT THROUGH this recession, but we can THRIVE in spite of it!