Importance of buying art as an investment (art is a great investment)
Investing in art is not just about decor but it is a smart way to grow your wealth. The specialty of original artwork is that it cannot be mass-produced. This makes it a valuable investment for art collectors and enthusiasts. It can be traditional painting, digital painting, NFTs, or sculpture. Do you want to know how? So let’s dive into art investment in this blog!
There are 2 types of art investment- traditional and non-traditional. Painting sculpture and photography come under traditional art investment while street art, digital art, and non-fungible tokens(NFTs) come under non-traditional art investment. The art market is independent of the stock market and often termed as currency neutral which means that its resell value tends to remain high, even when the economy is performing poorly.
However, art investment depends on the value of artwork which is based on certain factors such as the reputation of the artist, its uniqueness, its authenticity, and market trends. It is always best to purchase artwork with a certificate of authenticity. In this way, you can create assets for your business. As we are facing high inflation rates around the globe, art can serve as a precious asset to get benefits against inflation. According to Aritzon’s market report, the Art auction market size to reach USD over 38 billion by 2024 growing at a CAGR of over 3% during the forecast period. The increase in the art auction market is due to technological advancement in Artificial Intelligence which is helping the collectors and firms to make decisions as the entry of blockchain is expected to improve trust and transparency in the global market.
According to an Artsy article, during the times, there was an increase in art auctions because people were at home, they were buying art to make themselves feel better, said Jonathan Crockett, chairman of Asia and head of 20th-century and contemporary art in Asia at Phillips.
Moreover, the Canadian government has implemented attractive tax incentives to promote the purchase of original Canadian works of art. The Canada Revenue Agency (CRA) has established that taxpayers who purchase or rent Canadian artworks, either for their office or for the common areas of their places of business (such as the lobby or hallway) can claim a tax deduction for the cost of purchasing or renting the work.
Investing in Canadian art not only beautifies the space but also presents a unique opportunity to support Canadian artists, benefiting from tax incentives offered by the Canadian government. Moreover, it acts as a symbol of success and sophistication, reflecting one’s taste and appreciation for creativity. However, this art investment game is secured and at low risk, if art is by famous artists such as Banksy or Damien Hirst, the emerging artist seems at high risk- Sad and harsh reality!!