How to invest in art

POTENTIAL: DIVERSIFYING PORTFOLIO BRINGS SIGNIFICANT RETURNS

- Marelize van Zyl

Art has become an attractive alternative investment, offering the opportunity to diversify one's portfolio with the potential for significant returns.

One of its biggest advantages is that it tends to hold its value, and, over time, can appreciate, all while offering buyers the pleasure of enjoying their acquisitions.

The global art market was valued at $552 billion (about R10 trillion) last year and is projected to grow to $585.98 billion this year and $944.59 billion by 2033.

This growth is driven by increased artwork sales, particularly among high-net-worth individuals seeking to include art in their investment portfolios alongside traditional assets like stocks, bonds and real estate.

Investing in art is not exclusive to the wealthy - aspiring collectors can enter the market by acquiring pieces from emerging and up-and-coming artists.

Some valuable tips:

Understand the factors that influence value
Before making a purchase, it's essential to understand what contributes to the value of art.

Factors that influence price appreciation, include: