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Art Investment Risks: Is it Smart to Invest in Art?
With big tag-lines showing crazy records on art sales, it seems like everyone should just invest in art. But, although some art investors manage to get high returns on their purchases, investing in art is, in fact, a high-risk endeavor. Art investments carry a wide range of risks and expenses that many people aren’t aware of when entering the market. In this blog post, we’ll show you a few things you need to be aware of, to ensure a return on your art investment.
Art Goes In and Out of Style
The art market is a fickle one. It’s marked with different cycles and trends that are often difficult to predict. Artists who are in high demand at the moment can lose their appeal rapidly, and the value of their work can quickly plummet. Even prominent artists experience great shifts in value over time. For example, Damien Hirst’s body of work has experienced a significant drop in value between the years of 2008 and 2018. To minimize the risks, make sure to do some research about the art market or hire an art advisor. But keep in mind that nobody is all-knowing and that every purchase carries risks that cannot be predicted.
