BUYING ART AS INVESTMENT
In a rapidly evolving global market, many investors are diversifying their investment portfolios by exploring different kinds of asset classes. One such alternative asset class that has been gaining popularity in recent years is art. Investing in art can be a rewarding experience, both financially and emotionally.
Trends across the market indicate that art can appreciate in value over time, providing the buyer with potential financial gains at the time of sale. In addition to financial gain, art is widely regarded as a source of enjoyment and pride, adding to the inherent beauty of one's life.
Furthermore, art that is placed in your workplace can make a noticeable positive difference to the work environment, increasing the creativity and productivity of your team, and bolstering your workplace culture.
Utilising art to reinforce and define your corporate identity, or simply to communicate style, the LIGHTWORKS collection has something to suit all tastes. For commercial businesses in Australia, the purchase of art is also tax deductible.
Art can also be a valuable marketing tool, helping to create a unique identity for your business and differentiating you from your competitors. And because art is often seen as a status symbol, it can also help to attract high-end customers and clients.
The graph below shows the Sotheby’s Mei Moses Index for the broader art market between 1950 and 2021. The index shows that the trajectory in demand for the overall market has delivered a compound annual growth rate of 8.5%.
There are several factors that contribute to the value of a work of art, including its rarity, condition, age, provenance, and popularity. The most important factor, however, is usually the artist themselves. A work by a well-known artist will typically be worth more than a work by a less established artist.
When it comes to investing in art, there are no guarantees, but at LIGHTWORKS we represent artists who we believe will appreciate over time. We take a long-term view and can help you build your collection with an eye towards the future.
Investing in art can be a great way to diversify your investment portfolio and add a touch of beauty to your life. If you're thinking about investing in art, we can help you get started.
*This information has been prepared for informational purposes only, and is not intended to provide, and should not be relied upon for, legal, tax, or financial advice. You should consult your own legal, tax, and financial advisors before engaging in any transaction.