c “ As such, it is important to know where the market urrently is and what possibilities this holds for the future.
have added depth and resilience to the market, which in the past had been vulnerable due to the concentration of buyers in certain economic regions, such as Japan in the late 1980s, which led to a steep decline in the art market in the early 1990s as the Japanese economy faltered.
The performance of the Mei Moses World All Art Index, which tracks art prices across genres, nearly matched the returns from the S&P 500, which tracks US shares, over 50 years, and beat the index over the past 10 years. Art is also highly ‘non-correlated’ with stocks and shares, meaning simply that often when the stock market is down, the art market can be
performing strongly. So, if you’re tempted what and where should one buy? The answer to that question is to some extent dictated by whether you are looking at medium or long-term investment potential. Short- term returns are mercurial and most advisors say that art should be considered a medium to long-term investment. Short-term gains depend upon spotting a work which is undervalued, either by virtue of where it is being sold, a lack of knowledge on behalf of the vendor or, on occasion, good, old fashioned luck. Investing in this way is high risk but can offer good returns. However, it does depend upon a dedication to research to gain the relevant knowledge, coupled with
”
large amounts of time spent trawling auction catalogues and viewings, online auctions and dealers’ stock. To the layman investor, this is a hard way to invest, leaving medium to long-term investments as a more realistic proposition.
As such, it is important to know where the market currently is and what possibilities this holds for the future. Auction houses worldwide have seen a paradigm shift in the art that buyers want to buy over the course of the past ten to twenty years, away from traditional 18th and 19th century oil landscapes, genre paintings and watercolours to 20th century works, initially early twentieth century movements such as the Pre-
Stuart Brown oil - Still Life of Tomatoes in a Galvanised Pan. Sold for £2,800 in September 2013
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20/20 Finance & Investment
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