NATIONAL NEWS - There are more people collecting art now than ever before, according to Astrid McLeod, owner of a popular art gallery in the Western Cape town of Riebeek Kasteel called The Gallery.
McLeod says that art has been emerging as a new asset class for those looking for a well-diversified portfolio and, for many, the attraction of art as an investment is that it provides an opportunity for portfolio diversification into an area that has historically provided high returns and shown a low correlation to other asset classes.
“According to the 2014 Deloitte Art & Finance Report, 75% of art buyers are purchasing art for collecting purposes with an investment view — a substantial jump from 53% just two years earlier.”
Buy for pleasure
However, McLeod warns that many financial experts advise against art as an investment and says that one should not buy art for investment, but rather for “pleasure and enlightenment”.
Many great collections have started for different reasons, such as intellectual, aesthetic and emotional satisfaction. Whatever your reasons for deciding to start an art collection it can be a daunting prospect and one that seems out of reach for many.
“According to the 2014 Deloitte Art & Finance Report, 75% of art buyers are purchasing art for collecting purposes with an investment view — a substantial jump from 53% just two years earlier.”
Buy for pleasure
However, McLeod warns that many financial experts advise against art as an investment and says that one should not buy art for investment, but rather for “pleasure and enlightenment”.
Many great collections have started for different reasons, such as intellectual, aesthetic and emotional satisfaction. Whatever your reasons for deciding to start an art collection it can be a daunting prospect and one that seems out of reach for many.
Where do you begin? What is the difference between an original work and a limited-edition print? Which artists should you be focussing on? Where do you shop for art?
