Advice on Trends and Investments

TEFAF

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or centuries, investing in art has proven to be an attractive alternative to the more traditional investment schemes. Unlike stocks or corporate bonds, paintings are tangible assets which, when well chosen, tend to showcase a consistent and reliable increase in value capable of weathering difficult economic times. Art therefore provides investors with an interesting supplement to their existing portfolios to hedge against fluctuating interest rate and stock market movements. Let’s also not forget the emotional and intellectual value art can add to one’s life.

The significance of major art fairs such as the European Fine Arts Fair in Maastricht underlines the level of globalization the international art market has undergone. This year, visitors came to the Fair from over 56 countries, bringing the number of visitors to an average of 75,000 over the two week period. The private viewing prior to the start of the Fair already welcomed over 10,000 institutional and private collectors.

Indeed, museums and traditional European and US based collectors are now competing for a relatively limited supply of art works, with new buyers based in Russia, Asia and the Middle East. The unique characteristics of each painting, its history paired with the intransparent nature of the art market itself underlines the fact that art investment can not be compared to investment in financial instruments, and requires a professional and specialized approach. Sofrino can help investors put together a collection with the potential to yield a positive return on investment.

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