Investing in Fine Art

With the current economic times, people often ask me, “Is this a good time to buy art?” The answer is a definite “Yes” – and even more so for many reasons. Works of fine art are tangible and can be considered hard assets.  This means you can physically sell, trade, barter, donate and will your art. You can also hold on to your art collection for personal enjoyment with the added prospect that it will appreciate in value over time.

Consider art as part of your asset allocation plan to help balance other investments in your portfolio, such as real estate, equities, securities, stocks, bonds, and commodities. By diversifying your assets, declines in any one particular asset class can be offset and the fluctuations of the performance of the total portfolio may be reduced, as each asset class has distinct characteristics and, historically, reacts differently under the same market conditions.

The key, however, is to invest wisely and to make informed decisions about quality, rarity, price, provenance, and the importance of the artist. Authenticity does not guarantee the rarity of a work of art or its significance in the art world. The critical point here is to remember that when investing in fine art: Art that is valuable is art that is rare and created by a triple-A-rated artist.

Here, at American Legacy Fine Arts (ALFA), we have designed an equation to help identify collection-worthy art for our clients. We call it 

Have you checked your artist’s pulse lately?

Here’s a guide to help you evaluate:

P =      PROVENANCE, PUBLICITY, PRESTIGE

U =     UNIQUENESS

L =      LIFESTYLE

S =      SALES & SECONDARY MARKET

E =      EDUCATION, EXHIBITIONS

If you are serious about owning fine art and want to be certain that you are acquiring quality, contact us at ALFA for private consultation. Our knowledgeable team can provide you with information and advice to help guide your collection.

By telephone (626) 577-7733 or email  info@americanlegacyfinearts.com (info null@null americanlegacyfinearts NULL.com)