In art investment, fund managers estimate when certain artworks will peak in value with various indicators coming from auction houses, curators’ and galleries’. Several art funds narrow the scale of investment by focusing on art from a certain region, movement, or alternative mediums such as photography.
As a recently developed asset class that generates profit for investors, it has been argued that art investment is contributing to the excessive commercialisation of fine arts. Art critics like Brian Sewell strongly discourages anyone to invest in art:
Although investment will aid the growth of the art world as financials strive to educate themselves about this creative domain. It’s apparent art will become associated with monetary value as opposed to the genuine appreciation of skill.
Artsy x UBS (2015) The Art Market (in Four Parts) [Online] Available at https://www.ubs.com/microsites/ubs-artstudio/translating/the-art-market.html [Accessed on 22/07/2016]
Sophia Wan (2014) Wealthy investors flock to fine art funds [Online] Available at http://money.cnn.com/2014/04/17/investing/art-investing/ [Accessed on 22/07/2016]
Sophie Christie (2015) Brian Sewell: ‘My biggest fear is mansion tax’ [Online] Available at http://www.telegraph.co.uk/finance/personalfinance/fameandfortune/11485082/Brian-Sewell-My-biggest-fear-is-mansion-tax.html [Accessed on 22/07/2016]
Asja Nastasijevic (2016) Putting Art Investment Funds to the Test [Online] Available at http://www.widewalls.ch/pros-cons-art-investment-funds/ [Accessed on 22/07/2016]
Adriano Picinati di Torcello (2010) Why should art be considered as an asset class? [Online] Available at http://www2.deloitte.com/content/dam/Deloitte/lu/Documents/financial-services/artandfinance/lu-art-asset-class-122012.pdf [Accessed on 22/07/2016]