Art sustains strong capital growth, despite share market turmoil
Even in 2009, the capital appreciation opportunities for art remain solid - depending on three important factors:
- 1. the specific artists selected for the portfolio
- 2. the specific art works produced by the selected artists
- 3. time in the market
We have recently reviewed the portfolios of some of our clients who acquired art through us to find very pleasing results.
In one example, a Ningura Napurrula piece was acquired in January 2006 for $11,800. This piece was recently valued at A$25,000 by an independent valuer - showing growth of 25.3% per year over the three years.
A second example was a Makinti Napanangka piece, acquired in January 2006 for $17,200. This piece was recently valued at $35,000 by an independent valuer - showing growth of 24.5% per year over the three years.
And a Minnie Pwerle, which was acquired in December 2005 for $6,150, was sold in May 2008 for $9,000. That's growth of 16.8% per year over the two years. This piece would most certainly be worth more today.
In each case we found that of the artists selected, the specific pieces were important factors in seeing capital appreciation. Equally as important was the time held. We found that the longer the art was held the better chance for capital growth.
So contrary to opinion in the popular media, Art remains a solid long term investment so long as the right artists are selected and the best quality pieces are chosen for the portfolio. Like other long term investments, it's about time in the market, rather than timing the market.
To discover more about the investment opportunities of art, call one of our art advisory team on +61 2 8823 4300. Our advice is given freely and without obligation.
