Over the past twenty years, the popularity of investing in art has grown tremendously. Globally, fine art prices have increased in value over the past 10 years, whilst African fine art prices have increased by 22%. New World Wealth (a global market research group, based in Johannesburg) says that South Africa is the largest fine art market in Africa. Leading artists in South Africa include Irma Stern, JH Pierneef, Gerard Sekoto, Maggie Laubser, Hugo Naude, D.Bell C.Scotnes and many more.
Stories of emerging fortunes in this art have become increasingly common in newspapers and magazines and Art often provides its owners with intellectual benefits, social capital and cultural status. Art Curator Gallery on Lourensford Wine Estate, Cape Town, specializes in these Leading artists and Old Masters.
Art can be an integral part of an estate plan and an efficient and gratifying way to pass wealth to heirs and philanthropic causes.
Unlike other investments (like real estate, cars, and yachts), art has minimal carrying costs. Often appreciates or maintains its value.
Collecting art feeds passion in the heart, whilst adding aesthetic pleasure and beauty to your surroundings. Art has been proven to reduce stress and assist with health issues, both mental and emotional.
Collecting Art also supports the artists. In a world of mass produced products. Why not treat yourself to something truly original and unique, whilst also supporting creative individuals?
South African art is successfully traded internationally – with record prices being fetched for works by a small circle of well-known modern South African artists, for example: Irma Stern’s Arab Priest work sold for just over 3 million Pounds in 2015. A secondary and tertiary set of contemporary South African artists, such as William Kentridge; Deborah Bell and George Pemba now fetch record prices overseas as well. To give you another example, Bonhams Auction House in Britain has in the last few years gone from having one auction for SA Art a year to one every quarter.
Art has historical value – it reflects the politics, events and culture of its time. Therefore investing in contemporary art will preserve the voices of the present.
Art brings people together – whether it’s a shared love of a particular artist or style, or a heated debate over who is “one to watch”, art can inspire thought-provoking discussions and new perspectives.
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Art investment is a non-liquid, alternative form of investment. It is usually part of an investment portfolio. An art investor aims to purchase a piece of art, keep it for years or decades while it appreciates and sell it years later at a profit. Art has some qualities that other investments do not; for instance, it can be hung on the wall and enjoyed for years. It also does not have to be declared to the government in terms of capital gains when sold by an individual, unlike the sale of stocks and bonds. Art investors seek to diversify their portfolio with an art investment.
Some investment firms put about 2.5 to 3 percent of their investment money in art. They seek good advice and often buy paintings that are older and have been popular historically, such as paintings by the Old Masters. These investments are kept over decades, and sold off when the market is right, with the investor seeking to get a 6 to 10 percent profit rise per year. These investments are also often made to be given as inheritance to future generations of the family.
“Fine art has outperformed stocks, bonds and real estate over the past 20 years. It has a low correlation with other assets, providing excellent diversification. And it is portable, so you can take it with you around the country and across borders. However, I don’t have the slightest interest in owning art through a fund. To me, that takes away this asset’s single greatest benefit: aesthetic pleasure. The paintings, prints and sculptures I display in my home and office pay dividends every day. I never tire of looking at them. Guests are intrigued, often asking where I got them or why I bought them. No investment provides more pleasure – or says more about you as an individual – than the art you display in your home.”
All the art listed in this article is a available online https://www.luxuryxclusives.com/boutique/ .
