Diversifying The Investment Portfolio With Fine Pieces Of Art

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Wise investors always diversify their investment portfolio as hedge against any economic or political turmoil. Aside from investments in stocks and bonds, investors usually put some money in gold, coins and more recently in fine art. Investing in fine art has its advantages because you can enjoy it while waiting for the artist to make a name in the world of art.

water-lilies

It is next to impossible to acquire a Water Lily painting by the great Claude Monet because they are sold for millions of dollars. Claude Monet’s paintings are regarded as some of the best works of art of the 20th century. However, you can invest on water lily paintings made by lesser-known artists. While waiting for the value to appreciate, you can hang the painting on the walls of your home so that you will have your own indoor flower garden.

Starting an art collection for the purpose of investment is not an easy feat. Before you decide on a certain piece of art, research the artist and how his work is accepted by art connoisseurs, art dealers and auctioneers. Authentic pieces of art are generally difficult to come by because they are rare and highly priced. When an authentic painting is offered for auction, it includes a certificate of authenticity from the artists himself if he is still alive.

Whenever you buy works of art, it is important to determine the reputation of the source. Since great artworks involves large amounts of money, many people become victims of fraud. Be very cautious of reproductions because they are only copies of the original work of art. A print has higher value particularly if it is signed by the artist; however, for investment purposes, do not expect a print to generate high returns on investment. Meanwhile, a print can be very impressive on the walls of your living room.

Compared to an auction where the acquisition of an artwork can be very competitive, Fine art dealer provides you with a more relaxing environment while you decide on a purchase. You can be provided with an inventory of the available paintings that has the potential to appreciate in value in the coming years.