Turn to page 5 of this guide and you will see an image of the infamous Edvard Munch painting, The Scream, being auctioned at Sotheby’s in May 2012. One of four versions of the painting created by Munch, it is the only one that is privately owned. It sold for more than £80m. Art as an investment is becoming increasingly popular. As too are investments in antiques, race horses, venture capital funds, real estate, jewellery, forests and other such alternative asset classes.
The increasing interest is, in the main, the result of economic uncertainty and investors’ desire to look beyond traditional vehicles. It could also be said that there is a growing appreciation of the value – and satisfaction – of turning passions into profit.
Alternative investment strategies can be risky. They often involve putting faith into fledging companies, the need for a horse to cross a finish line first or being left at the mercy of the weather as those investing in vineyards are. However, they can also offer the opportunity to diversify, generate returns and invest in items of personal interest. What better than buying a painting to enjoy while also benefiting (one hopes) from the increasing value?
5 August 2013