Alternative investment: Getting savvy at state-of-the-art investing

Jun 27 2014, 12:54 IST
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SummaryArt is a symbol of beauty, grace and wealth, and an integral part of oneís assets.

young artists are still reasonably priced.

Successful art investments not only require extensive knowhow of artistic qualities and authenticity of the object, but also an understanding of peculiarities of the art market. However, there are large gaps in expertise between buyers and sellers, and investors often have difficulty assessing the actual price. One of the pitfalls is the high transaction cost ó commissions to galleries, auction fees, insurance and maintenance costs.

While there is no set time to sell, art is not a field where investors can make quick money. It takes years, even decades, for it to appreciate . In short, there are no good rules on when to sell.

I would recommend that if you choose art as an asset class, the best way to insure it would be purchasing something you like ó so that you can live with it even through the lean years.

The author is co-founder & MD, Entrust Family Office investment Advisors

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