4/21/2013

Why Rich People Invest In Art In Original Paintings For Sale

By Adele Madden


It would be noticeable that wealthy people seem to have a penchant for art. Original paintings for sale can reach astronomical prices especially when it has been made by a famous painter. In terms of the return of investment, art is a good option since it appreciates every year. Like many investment opportunities, this kind of investments involves risk taking.

One thing that makes this market different than the usual financial instruments is that it can be a secretive business. Finding successful art will not be easy. Many experts argue that there can only be two main reasons for it to be successful. The first process deals with the objective and transparent material. The second process is more subjective and speculative.

The criteria that governs the selection is not precise. Many changes in the indexes have been done and the market can either rise up of fluctuate. These indexes function like stocks and the price fluctuations may vary on the daily basis. It would be better for them to ensure that there are some people who need to make sure of it.

The wealthy regard art as treasure assets. These assets are those that are at par with jewelry, centuries old wine and antique furniture. Classic automobiles might also be a good thing for people. There are two kinds of investors of art, the high net worth individuals and the academics and professionals of art around the globe.

In depth studies reveal that these kinds of investment trends are very popular across the globe. This has offered a bit of insight into the financial and emotional motivations of wealthy individuals who are holding these particular items for sale. These high net worth individuals not only buy art for the sake of it, but to invest on the speculative appreciation that it brings.

In fact, almost ten percent of the net worth of the rich are made up of treasure assets. Many of these consider it as a financial investment which are largely bought because of the appreciation that it may have. This can also be a stable choice compared to the volatile markets that have been done. Also, those who live in the areas.

Investments can be divided among those that are risky and those that are blue chip. Blue chip investments are those that can be guaranteed a return of investment because of their popularity and their experience. Such artists like Picasso and Andy Warhol are considered as blue chip artists. Art and paintings made by blue chip artists can fetch millions of dollars in an auction.

Many buyers do not really consider themselves as art investors. Surveys and studies reveal that many wealthy people buy fine art as an investment. Majority of it believes that the financial value of art relies on the public taste rather than the intrinsic worth that people are going to have for quite some time.

The buying of original paintings for sale is favored by older people. It is popular among those who are extremely rich. The popularity of these kind of art is not entirely consistent across the world and art scene is usually alive in many countries.




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