Sometimes astronomical sums reached by works of art during auctions can encourage investment in this sector. An example a painting sold for 150 million dollars in 2021 while it was bought for 27 million in 1997. Another asset of the works of the art market is to be, like gold, dissociated from fluctuations in the stock markets which make it a safe haven. Two imperatives before embarking are to have sufficient funds and to be patient.
Invest in art, but which one?
Painting is not the only field of art, the beautiful pieces of furniture and works of art negotiate with an interesting added value for the rarest and most sought-after works. Although art investing market has become strongly globalized, it is subject to the effects of fashion. The selling price is logically affected, which sometimes means waiting for a style to come back into fashion before offering it for sale, especially for painting.
The deadline is very variable, especially for works of art not appearing in the “top 100”. The vancouverfineartgallery.com site offers an overview of the top-rated contemporary works as well as valuable information on the art market. Unless you are a very enlightened amateur, it is, therefore, necessary to seek professional advice, which is rarely free. If it is still possible to seek the advice of a gallery owner, antique dealer, or art dealer. However, you run the risk of being guided according to the professional’s own interests, without even mentioning the case of an unscrupulous intermediary.
There is also the fact that the art market is extremely large with very different styles and periods ranging from the many variations of classical works to the latest contemporary creations. In its article “10 Tips to Start Buying Art”, the vancouverfineartgallery.com site offers basic tips essential for first-time art purchases. If in doubt, you can contact a professional and independent expert specializing in one of the fields of art. These different addresses will allow you to contact one of these professionals: The expert in Works of Art and Confederation of Art Experts, National Chamber of Experts Specializing in Works of Art and Collectibles Invest in art is not limited to financial investment, especially for an amateur. Falling in love with a painting or any other object of art brings pleasure, which if it is not as easy to cash as gold, is nonetheless very real.
A relatively large down payment
An investment in art is considered overtime, at least between 8 and 12 years to hope to obtain an average capital gain of 7%. This yield also requires a basic investment of at least $20,000, where Gold takes a real interest from only a few hundred euros. In addition, Gold requires a very small footprint. This is not always the case with works of art. This threshold is the minimum for accessing the international market where reputable merchants operate. Apart from extremely rare cases, a painting or sculpture by an unknown artist does not bring in anything, unless you have an exceptional flair, an extremely rare case or reserved for the professional.
The investment fund, a high-cost entry ticket
Another way to invest in art is to access a specialized investment fund. Entering this universe is far from being within everyone’s reach with an entry ticket varying from a little over 100,000$ to 500,000$ at the renowned Art Collection Fund. On the other hand, this type of investment offers a return generally greater than 10%. Each collection favors a specific field of art which can be classical or oriented towards contemporary artists. Gold takes a real advantage here with an investment accessible to most budgets through the acquisition of a few coins, ingots or ingots. Another disadvantage of the investment fund is that you will not be able to physically profit from the acquired works. You can see some more ideas on Fine Art Gallery In Vancouver by clicking this kink.
Taxation of works of art
During the sale of a work of art, capital gains are taxed either at a flat rate of 6.5% of the price or on the real value with a rate of 19%. A holding period of at least 22 years makes it possible to avoid taxation on capital gains. Also, note that the average fee for an auction is 15%. Until now, works of art were not included in the calculation of the ISF. While the Senate had rejected the IFI project by excluding works of art, the second reading before the assembly could be the opportunity to reinstate them.
So that’s the little inconvenience, it’s a little, a little bit of a trickster, but why not. Once again, if you are very introduced in this environment and you are able to learn these things before others, why not use them. Apart from that, as it is not a classic financial investment and that it is not a company which generates turnover, dividends, and which has clients, it is still a riskier investment, solely based on the intrinsic value of the work of art and the law of supply and demand So why not, but quite risky.
That’s it for today, that’s all. Do not hesitate if you have comments to make on art, if you have invested in art. Personally, I invested a little bit in art but very little, but I found it nice, it’s just for the artistic side that I liked, not to make a sale, a gain. But if you invest in art, I would be interested in hearing your opinion. If you have additional questions about investing in art, feel free to ask them in the commentary of this guide. And as usual, don’t forget to “share” this guide if you like it, to receive all my investment advice with someone like that might interest, maybe someone who would like to invest in art.