You don’t have to be a regular reader of the “Wall Street Journal” or CNBC enthusiast to know that the first quarter of 2020 has been rough on the world economy. And, it’s unclear just when this financial uncertainty will end. An uneasy economy usually draws investors away from traditional investments like stocks and into more tangible assets like precious metals, real estate and even art. Does it really make sense to transfer a portion of your investment dollars into fine art? Consider the following before you call your broker.
What to know before you invest in art as a hedge against an uncertain economy
1. Art is best viewed as a long term investment. It’s a very rare piece of art that will increase in value quickly. Most art requires years, if not decades, to realize its full profit potential.
2. Art is not a liquid asset. It takes time to find the right buyer for your art when you decide to cash in on your investment.
3. Art requires some maintenance. Unlike paper assets, art needs to be kept in ideal conditions to hold its value. This means storing (or hanging) it away from direct sunlight and in a space with low humidity.
4. Art is not necessarily tied to the general health of the economy. On the plus side, art can do very well, even when stocks and market indexes are falling.
To learn more about buying art in uncertain times, visit us online or call us at 305.446.5578 to schedule an appointment. The Americas Collection is one of the premier corporate art dealers in South Florida.