So the critical question is, why invest in fine art? The answer to this is quite simple: Farhi offers an opportunity to invest your savings or excess income into a secure and solid investment equivalent to investing in property and gold. Still, the only difference is there will be less market fluctuation.
Why invest in at rather than stocks or the S&P 500
Warren Buffett, renowned and famous stockbroker Tony Robinson, a salesperson, entrepreneur, development coach, and author of Money Master the Game and Unshakeable.
Mr Robinson and Warren Buffett state that investing in low-cost index funds almost guarantees a 10% year on return from your original investment.
In contrast, According to Artprice, blue-chip artwork has outperformed the S&P 500 by more than 250% since 2000. If you look at traditional investing, such as into companies, they are far more volatile than investing in art or low-cost index funds.
There is volatility in the stock market that makes investing traditionally a dangerous option or at the very least risky the truth is anyone with an online broker such as Robin Hood or invest traditionally with a professional broker.
You will still be taking significant risks. Large percentages of your investment interests will be paid to your stockbroker and stock advisers that you may be money to acquire financial advice.
Warren Buffett advises that unless you are an expert investing in the stock market is a foolish and dangerous idea to support your future. Your retirement plans in one Buffett advises the S&P 500 index or other index funds being the safest option. Warren Buffett has even made arrangements to invest his money into low-cost index funds to protect returns.
So if you are planning to invest in art investments is much safer to put your money into art because its value will increase over time with inflation. If you saved $50,000 or £50,000 for your retirement, that money in purchasing power could be less than half due to inflation.
In contrast, the price of art will keep rising because it is culturally significant and because of its significance. Art is a rare commodity in this rareness and uniqueness that makes art a valuable investment over the long term.
Diversify Your investment portfolio
If you love art and are looking for ways to diversify your investment portfolio, art investing can be a solid choice.
According to the one price index, the art market consistently returned 7.6% to investors and outperformed the stock market in 2018. According to a 2020 report by Art Basel and UBS, the art market is now worth $64.1 billion.
What Is Fine Art and Why Are People Investing in It?
Though you may think fine art only includes paintings by famous artists like Leonardo da Vinci, it’s more than that. Fine art has just about any creative object made primarily for artistic expression. Fine art also includes several categories beyond paintings and drawings.
Art has been a popular way to invest for several decades, especially in times of economic uncertainty.
This type of investing is best for people who genuinely enjoy art, but it’s also a good fit if you’re looking for ways to diversify your investment portfolio and balance your risk. And because the time horizon on profit is typically measured in years or decades, you should be in it for the long haul, at least ten years.
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