Art-Investment – stabilize your wealth esthetically
On their last meeting on 07th
March 2019 European Central Bank decided to sustain the
low-interest-policy, at least until end of the year. Experts are sure it will
continue much longer, because it is a tool for many states to handle their
interest-duties in order to finance their deficits. It is not insight that economies
like US, UK, Japan or Euro-Zone will change this policy. The only way to
sustain family wealth is to invest in real assets like real estate, gold and
art. ERGO art-insurance director Julia Ries compared the German Stock Exchange
Index DAX and the Art index with 50 world leading artists over last ten years.
The Art-index is winning in terms of profit, as she states on ERGO website in
autumn 2018.
Art-Investment can be as well a profitable investment, which
benefits from increasing values of artists, especially upcoming and emerging
artists. Investors might hesitate, because art is always linked to personal
taste and appreciation. It appears strange to invest into something you might
even don’t like. Art-Investment-funds might be an alternative, because they are
disconnected from the ownership of a certain work, or from a disliked artist.
But how to identify the artists to set on? Not everyone who
is unknown today might be the new Picasso tomorrow. Art-advisors and
consultants are getting more important to find the new talents. And galleries
have to get more courageous, not only to offer what their exhisting clients are
asking for today, as well they should dare to recommend new artists.
“With all technical possibilities
we have nowadays, it seems that the most difficult is still to identify the emerging artists. It
looks like they are hiding” (Gunther Sachs, 1932 – 2011).
Recently, it seems that there is no clear trend in art,
where to set on. Too much tendencies are parallel. This fact makes it more
difficult to scout the stars from tomorrow. Still it is not a mistake to buy
classic modern art, especially from French artists. They guarantee a certain
stability on the market. But taking a look on contemporary art-fairs shows,
that painting in extraordinary quality of technic is highly demanded,
especially European art.
There are many upcoming and emerging artists with high rates
in development, which sold once their works with 5.000 – 7.000 Euro to find
them later on auction-houses rated with 120.000 Euro and more. High-Quality
artist-scouts are checking not only the artistic potential but as well the
personal capability of performance. This includes the questions, if the artists
understand the rules of success, how disciplined the artists can work and if
they could handle it psychologically, to break through to the top. Some
galleries offer even coaching programs for artists they want to promote.
Well organized art-advisors will check as well the
resell-possibilities of the artworks. The market develops its mechanism of stabilizing
wealth and increasing, just when more collectors are interested on a certain artist,
and if the gallery has access to them.
Provided this points are checked, an art-investment can be
very profitable, especially into good trained Middle- and Eastern European
artists. Especially the Romanian art-scene from the academies in Cluj,
Timisoara and Bucharest offers surprising possibilities. The former Taxi-Driver
Adrian Ghenie who is traded now with more than 3 Mio Euro is just one example. Especially
for smaller budgets it can be profitable to invest in art. It can start with a
range of 1.500 – 5.000 Euro per piece. Quiet often we see an increase of the
artist-quotation in a range from 3.000 – 8.000 Euro. They are on the jumping
board to enter over 10.000 Euro, than it starts to roll easier to develop the
quote.
Since 2008 the low-interest-policy in the Western world is
going on. Since approximately 10 years, art is booming. If you bring nowadays
money to the bank for seven years and receive 1,5 % interest, in reality you
lost money, because of the depreciation of the money. If you invest
strategically into art, you will win. At least you will esthetic into your
property.
