The Art of Investing in Art
(Thanks AJ). According to article, yearly art sales are now reaching an estimated $10 billion in the United States alone, and "While money invested in the stock market's S&P 500 Index — a conservative bet on Wall Street's top 500 companies — has earned an annualized 11 percent return over the past decade, that same money sunk into the contemporary art market would have produced a whopping 29 percent return."
That's impressive, but I want to know where the figures to determine these claims come from? Secondary art market sales? Examining the IRS returns of all art galleries in the US? Reviewing all the appraisals of artwork done over the past decade?
And I got my answers to those questions; not from the article but from doing a bit of digging on the web.
This all comes from a team of Wall Street analysts behind Fernwood Art Investments, a new firm with offices in Boston, New York, and Miami (I can understand New York and Miami, but Boston?).
According to their website Fernwood Art Investments is a
"...research and investment company focused on the art economy. We are the first independent firm to develop a comprehensive suite of art-focused investment research, advice, financial products and services for sophisticated investors and collectors. Our work generates new ways to participate in the art market and, in the process, brings significant new capital to the art economy.Anyway, their website has some pretty impressive, if Wall Streetish sounding documentation and references and studies and words that show me that these guys seem to know what they are talking about.In short, Fernwood is employing rigorous portfolio management techniques traditionally applied to equities, bonds and commodities, in combination with academic and art trade expertise, to derive investable art insight. We invite you to explore our vision of art investing."
Article comments
1 - stephen fern
Take a look at this web site which provides a balanced perspective of art as an investment from an organisation that has NOTHING to gain if viewers choose to invest in art.
A collaboration of input from Art industry experts (sothebys, Christies, Bonhams, Fine Art Fund, Merril l Lynch and leading international gallerists - very imformative!