The benefits of art as investment are twofold: apart from the obvious financial gain in reselling artwork over time, there is also the emotional dividend to be considered, both from the joy of owning and displaying unique pieces of original artwork, and the knowledge that you have made a significant cultural contribution by supporting an upcoming artist. Looking at a portfolio of stocks and shares can't give quite the same feeling! In some countries, donating artwork that you have owned for over a year to a college, foundation or charity is tax deductible - based on the appraised fair market value, which will in many cases be significantly higher than the amount paid for the work.

Experts agree that art can be a wise investment, especially during periods of uncertainty in property and the stock market:

According to Hislops 2003 Price Guide, individual artists have chalked up price increases of up to 700% in 1997-2002.

According to Karl Schweizer, head of art banking at Swiss bank UBS, there may be some truth in the rule that art booms when the stock market wobbles.

Contemporary art has gone up in value by 55 per cent in the last 12 months alone, according to a study of auction sales from around the world conducted by Hiscox.

Recent research by Barclays Capital and The Economist indicates that art has out-performed both equities and property over both short and long periods of time - demonstrating that art has emerged as a viable asset class. The art market offers attractive and significant opportunities to well advised investors. This is a market which investors and wealth managers cannot afford to ignore.

While few people can afford to buy a Picasso, a Van Gogh, or even a Damien Hurst, buying into art by a new artist can offer even better returns in percentage terms - prices increase most steeply as an artist makes a name for themselves.

In buying direct from the artist, you won't have to pay the additional 40% fee charged by most galleries on top of the artist's price, thus benefitting you even more. Your potential gains could be recouped now, not just in the future.

Syndicates are welcome, if you are a group looking to invest smaller amounts over time, please find contact details below.

~

Times Online Video

Times Online Article

Financialadvice.co.uk Article

Credit Suisse Article (Click 'yes' to the question about living in switzerland to read the article)

~

~