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Art: Aesthetic Pleasure & Global Commodity


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Art has been a form of expression and communication since ancient times, serving as a medium for documenting human history, culture, and civilisation. Today, art has evolved beyond just being an object of aesthetic pleasure; it has become a commodity that is traded in the global market, and for good reason.


Limited Supply and High Demand


One of the main reasons why art is a good investment is the limited supply of original artworks. Unlike other investment options, such as stocks or real estate, the number of original artworks is finite. Each artwork is unique, and once it is sold, it may not be available in the market again. This scarcity of supply has led to high demand, driving up the prices of art.


Tangible Asset


Art is a uniquely tangible asset. Investors can see, touch and be moved by the artwork, making it a more personal investment option. Additionally, unlike other tangible assets, such as real estate, art is portable, making it easier to transport and store.


Inflation Hedge


Art has been proven to be an effective hedge against inflation. The value of art tends to increase with inflation, as investors seek tangible assets to preserve their wealth. Historically, art has outperformed other inflation hedges, such as gold or real estate.


Diversification


Investing in art is an effective way to diversify your investment portfolio. By adding art to your portfolio, you can reduce the overall risk of your investments. Art has a low correlation with other asset classes, such as stocks or bonds, making it an effective diversification tool.


Potential for Appreciation


Art has the potential to appreciate in value over time. While there is no guarantee that the value of an artwork will increase, many investors have profited from their art investments. According to the Masterworks All Art Index, contemporary art prices appreciated by about 17.5% during high inflation.


Cultural Value


Art is more than an investment; it is also a valuable cultural asset. Owning a piece of art can provide a sense of cultural pride and contribute to the preservation of human history. Additionally, owning art can be a source of enjoyment and fulfillment for collectors and enthusiasts.


Investing in art can be a rewarding and profitable experience. However, it is important to note that it also requires expertise, research, and due diligence. Swan Deverell Auctioneers hold regular auctions of Australian and international art throughout the year. Our sales offer the perfect entry into art investment, giving you the opportunity to purchase a tangible, and beautiful, asset.

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