Investment in Art

Today, we find that an increasing number of individuals are looking at alternative investments, which provide them with a diversification away from a particular asset class. People are willing to invest and looking for areas other than the stock market for investing. Investing in the vintage wine, coins, stamps and Art, is now an indulgence which gives them an opportunity to cash in on their hobbies, without having the level of expertise that is required for other direct investments.

Art is being incorporated into the investor's overall asset allocation decision. The art scene around the world is growing significantly. With more and more investors looking at art as an alternative asset class and a store of a long term value, average annual art valuations have outpaced average annual stock market valuations by more than three times since 2000.

Now this market is much stronger. In terms of returns one can see the market price has gone up four to five times, in some cases ten times in the past four years. With a sharp rise in the value of art and a comparatively disappointing performance in the stock markets and the real estate, individuals with money are now tapping Art as an alternate investment avenue.

This is the reason why Citigroup and others are buying paintings as an investment for their very important private-banking clients. Wealthy clients who switch to art collection, as a way of diversifying investments, can find it an unexpectedly pleasurable experience. Unlike incase of stocks and shares, investors can literally admire their expensive investment.