Art is a risky investment. Even the “experts”, such as auctions, dealers and collectors to experts make mistakes and sometimes lose money on what they consider to be “investment grade” art. On the other hand, the return can be very large, potentially higher returns by making art on their investment, but a risky business.
Center of the art market investment generally cluster around financial centers like New York and London, and a lot of interest usually focuses on art that respects the principle of “Goldilocks” is in the middle: not too old, it was considered old, which often raises questions about the tradition of participation and falsehood, and not so modern, that there was great auction house.
In this ground, there are a number of factors that can help reduce risk. Artists who have stopped producing (for pure artist who died) is often less risky than those who are alive for the simple reason that the supply of art is well defined (but not perfect because of the possibility of new works that come to light and counterfeiting). Search history auction closes and the home institution, including things like history, exposure, and proof of ownership of an expert and the establishment of marketing (and liquidity), all reduce the risks. Read more…