How the Art Market Thrives on Inequality - NY Times
Edvard Munch's The Scream
Art as an investment is a topic that comes up often. Can art be an investment? Potentially. Can you make money by selling original art? Sometimes. Will your collection always appreciate in value because you own original art? No. These are all fair questions, but when it comes down to it, buy art because you love it. Buy art because it enhances your home. Buy art because it enhances your life. Buy art because you have a terrific relationship with the artists. I never recommend purchasing a painting because it's an investment, however, there's always a possibility that you might make some money when you sell your painting. Like any investment, there's always a risk and there are no guarantees, otherwise, everyone would be buying art. Can you minimize your risk based on thorough research and being prepared when a painting presents itself at a good value? Yes. I think it's more accurate to view your collection as an asset, but you can't always expect to make a profit or even get your money back when you sell it, but you can sell it. Because collectors are spending a lot of money on their art collections, why not think about collection factors or other variables that can potentially enhance the value of your collection? Here's a terrific article that was in the New York Times recently that discussed art as an investment following the record sale of Edvard Munch's iconic painting The Scream for $120 million. It's a very interesting article, so enjoy and let me know what you think.