Tips for Investing in Art

Art can be a useful and beautiful investments, and would-be investors should recognize the long-term nature of art as an investment. We've all seen newspaper headlines about someone who bought a painting for peanuts, only to discover they've actually purchased a masterpiece. Collectors conduct tours of their homes, boasting paintings that are now worth many times their purchase price.

These tales of success encourage us, but how promising is buying art as an investment? When making a decision to purchase original art as a portion of your investment plan, narrow your focus and consider these facts:

• Art has an immediate and practical advantage over other types of investments:
  - Paintings can be used to furnish a home or a business office.
  - Art may provide an aesthetic element or simple comfort to an interior.
  - Art also may offer an instant pedigree (in the home) or instant credibility (in the office).
  
  
• Investing in art takes place over a longer time span at a moderate level of risk. Art is vulnerable to fluctuations in public tastes and other factors, so it is considered a speculative investment.
  
  
• Buy a work of art primarily because you like it, and because it is an expression of your tastes. The profit potential should be a secondary consideration.
  
  
• Avoid putting more than 10 to 15 percent of the value of your investment portfolio into art.