Month: March 2013

Is Buying Art as an Investment a Good Idea?

Buying art purely as an investment is a very risky business, in my opinion. This morning I read an article in El Economista about Javier Lumbreras, the founder and director of the Artemundi Global Fund (AGF) where he talks about how there is no doubt in his mind that collecting art is currently the best investment as it will never lose its value, it is anti-inflation, the risk is very low, and the art market is booming. A few big figures were thrown in here and there by the author of the article, Vicente Gutierrez, like the fact that the art market is currently a $60 B I L L I O N dollar industry (Oh my!). However, Gutierrez failed to specify the minor detail that these $60 billion dollars don’t represent fine art sales only: they encompass everything from luxury goods to real estate, to wines and memorabilia, decorative art and contemporary art. It is a very fragmented market and so that massive figure presented on its own is very, and I mean very, misleading. This article got me …