Rich people invest in art for decades already. In this month’s newsletter I will present you a video, which describes the art market very well. Although it doesn't look like that according the title of the video, the attentive viewer learns that art is wise investment.
The video, to which the link can be found below, is perfectly made and explains how the art market really works. It is quite clearly said after 8 minutes and 20 seconds that "Art is wise investment". But investing in art depends on fashion and trends. It might be impressionism today, but in ten years it is no longer trendy, and cubism, for example, will come into fashion. And it doesn't matter whether we are talking about paintings, sculptures or other art objects. Simply put, what was expensive in 1995 may not be necessarily expensive in 2015. Sure, da Vinci, Rembrandt or Picasso will always have their value, but this value can (depending on the art work) fluctuate significantly over time.
And that's the difference between investing in art and rare postage stamps. Postage stamps are not subject to these fashions and trends. Stamps that were rare 100 years ago are still rare today and their value in terms of money is still rising. This is due to many reasons, but there is no room for detailed explanation here.
But don’t get me wrong, I am not saying that investing in art does not make sense. Art is certainly one of the products that should not be missing in any valuable investment portfolio, because in addition to an interesting appreciation, it also offers other aspects, such as aesthetics.
