In recent years people have increasingly been diversifying their investments, and in this time it has been demonstrated that buying art is one of the most profitable and safe choices that exist today. Many of the collectors who have invested in the past in this type of assets own artwork collections that have far exceeded their initial value over time, besides having enjoyed them during years.
There are many reasons that motivate us to invest in art, though the most relevant for buyers, advisors and experts are these four: enjoyment, benefits for the social reputation of the buyer, economic profits and tax benefits.
How profitable can Spanish art be?
Purchasing works by Spanish artists is undoubtedly one of the most profitable investments anyone can make, since their prices are currently well below those in Europe; in other words, they are an excellent opportunity for buyers who want to start building their own collection.
What should we consider before investing in art?
As with any investment, we must first know the amount of money we want to invest, in order to filter the procedence (authors) and number of artworks we will be able purchase with our budget. We must also decide the risk we can afford and therefore opt for young or established artists.
Young artists tend to generate greater benefits over time, while established artists are safer investments, but require us to have a bigger budget due to their higher prices.
Is art a good investment for your company?
To date, art has been a very good investment also for businesses because they can benefit from the main features offered by this type of asset: Revaluation, personal aesthetic enjoyment, image, economic gains and tax benefits.
How can a company improve its image by investing in art?
Buying art should produce enjoyment and the delight that entails the contemplation, acquisition and possession of a work of art.
Recognized collectors do not hesitate to express their feelings about art as something much more rewarding than just an investment. Likewise, some of the best marketing experts consider art as an important element in the communication strategy of the company towards society and political institutions; first off, through sponsoring exhibitions and secondly through buying art.
In what way the tax discounts from buying art benefit companies?
Tax benefits are one of the best government incentives to encourage the purchase of art. United States was the first country to do so in the 60s, which made the emergence of major collectors possible.
One of the main tax incentives is the dation system, which allows contributors to pay taxes through works of art, without paying the added value that the artwork generates.
Is art the next big investment?
The main reasons leading experts to consider the possibility of art being the next great investment opportunity is largely due to the economic benefits granted by the purchase of such goods: Liquidity, increased value, long-term investment and versatile investment (insurable and deductible).
Image source: Flickr.com
Image Authors: See Ming Lee, Insapphonwe Trust, Mr. TinDC, icen Lund, Analyst99, Djvillacis, Michael Berger, Warhollian.