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Investing in Art - Oil paintings as an investment
Art objects as an alternative investment
Due to several requests and considerably increasing counterfeiting of art you will find here some common arguments for the benefits of investing in art. When it comes to investment opportunities, many people buy stocks, bonds or real estate. With regards to oil paintings, original artwork also offers the advantage of keeping value as money looses value.
- Artworks are inflation- and currency-independent
- From the economic perspective, the supply side of original art is inelastic, thus keeping the investment risk calculable
- In addition to financial returns through value rise, buyers also have a psychological return. This means the consumer benefit is derived, measured by the return of alternative investments
- In general, there are no tax implications for transmission of oil paintings
- Therefore the art market provides an alternative investment for portfolio diversification and is used for the distribution of risk.
Ever-increasing bank money creation and growing national debts of numerous nations leads to rising inflation. Recently passed national economic stimulus packages will accelerate this process and, therefore, will inevitably devaluate currencies even faster. The worst case could lead to a hyperinflation, as Germany already has had twice in the 20th Century. "Save investments", those that are independent from monetary losses, are therefore - besides emotional reasons to buy art and personal enjoyment - of strategic importance.
Main preconditions are, however, uniqueness and quality.
Two factors secure the value of my oil paintings:
1) The longevity and
2) the prevention of plagiarism.
Oil paintings last over many centuries. In order to secure this, I only use materials with the highest possible standard. Furthermore, my paintings are finished with protection varnish. This is done after the drying phase.
Plagiarism requires growing attention: I also get regularly offers from so-called "copy artists" that offer reproductions of original paintings. Apart from the copyright infringement against the respective art creator and the worthlessness of these fake paintings: everyone that buys my oil paintings will receive a Certificate of Authenticity written in English. Even transfers of my paintings can therefore be guaranteed.
For further questions please feel free to contact me.
Frey, B.S. and Eichenberger, R. (2003): Art Investment Returns, in: Frey, B.S. (Hrsg.): Art & Economics - Analysis & Cultural Policy, 2nd ed., Springer-Verlag, Berlin.
Schierenbeck, H. (1993): Grundzüge der Betriebswirtschaft, 11th ed., Oldenbourg Verlag, München.
Thorsby, D.C. (1994): The production and consumption of the arts: A view of cultural economics, in: Journal of Economic Literature, vol. 32.
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