Picking one specific art piece to invest in is analogous to picking one ping-pong ball out of ten thousand practically identical ping-pong balls.
London, UK (PRWEB UK) 29 January 2013
Investor’s portal iNVEZZ recently published a commentary by Frank Quin on art investments. Quin explains in detail what investing in art means and why it is very much of an oxymoron unless one has plenty of cash to lose.
Mr Quin points out that investors motivated to buy art to make a profit should note that if a work of art has truly acquired international appeal, its value has most likely “gone stratospheric”, making it impossible for mainstream investors to acquire the piece. Alternatively, if a work of art has no or very few admirers, chances are that, as an investment, it is worth next to nothing.
The author of the analysis goes on to explain that the “trick” to making a successful art investment is to pick future trends and undiscovered artists before they have entered the mainstream. Once they gain popularity and international recognition, the investor will be able to reap market-driven returns. Mr Quin points out that Eric Clapton recently sold a piece by Gerhard Richter, an abstract German artist, for £21.3 million, the highest ever price paid for a living artist. Mr Clapton had reportedly acquired the painting ten years earlier for a tenth of that price. “As art investments go that has to be considered a winner,” says Mr Quin in his commentary.
Mr Quin however notes that Eric Clapton’s art investment success story could hardly be replicated by the average art investor, given the price the famous guitarist paid for the painting and the fact that Gerhard Richter was not in fact an undiscovered talented artist but was already well-known both in his native Germany and abroad.
The author then explains that picking one specific art piece to invest in is analogous to picking one ping-pong ball out of ten thousand practically identical ping-pong balls. Mr Quin therefore concludes that, unless one has a lot of money to lose or, alternatively, wishes to support a specific artist, art investments do not make much sense.
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