Modern Art As An Investment

Answering the question whether modern art could have investment value, experts at Modern Canvas Malaysia make a few important observations. It is important to understand that like all other investment opportunities, investing in art requires experience, evolving expertise and an element of risk.

The future in terms of price appreciation for modern art pieces, should be gauged in the medium to long term time frame. Modern Canvas in Malaysia suggests that, acquisitions be made based on their potential to increase in value – being able to make such assessments requires time and gaining expertise.

While the right pieces of modern art could deliver future price appreciation, it is important to be aware of factors that would reduce risks. Random and impulse purchases of modern art, are more likely to give disappointing returns. Understand the market, keep a tab on the market and if you happen to be buying modern art with a view to resell in the future – keep in mind that current market trends could change.

High-quality modern art pieces can significantly appreciate over time, often outperforming traditional investment vehicles like stocks or real estate. There could be a debate on this but, there are a fairly large number of real life cases to prove this. You might want to have modern art, as one segment of your investment portfolio.

Experts at Modern Canvas mention that, modern art investments could be safe from conventional market risks – however, remember that art based investments, have their typical risk elements too. Art investments provide diversification, reducing overall portfolio risk as they are generally not correlated with the stock market.

This is an interesting fact that is specific to modern art. Stocks and bonds exist merely in your books or your mobile devices! They are basically virtual, modern art pieces are different. Unlike stocks or bonds, art is a tangible asset that can be enjoyed while it potentially increases in value

While price and budget do play a role, Modern Canvas believes that modern art executed by well known artists, provide better investment opportunities. The reputation and popularity of an artist greatly influence the value of their works. Emerging artists may offer high returns but come with higher risks, while established artists provide more stability. The demand for works of art by renowned artists will always carry premium price tags.

Trends in the art market can shift, influenced by cultural, social, and economic factors. Staying informed about these trends is crucial for making informed investment decisions. Combining different types of modern art in a portfolio, could be a way to tackle the issue of changing markets.

And another piece of advice from Modern Canvas - Ensuring the authenticity and provenance of an artwork is crucial. Always a good idea to source art acquisitions from reliable sources like Christie’s and Sotheby’s. The equation between value, provenance and reputation of the artist etc. is complicated, experience builds expertise and you should keep a close watch on investment trends.

The condition of the artwork affects its value. Proper conservation and restoration are essential to maintain and potentially enhance value. This is absolutely essential, the condition of the modern art that you purchase, should be clearly recorded on the date of purchase. Any change in condition after that point, is likely to affect the value of the piece in the future.

NOTE

This information is not meant to replace professional investment advice. Always stay informed and seek professional help, when initiating any form of investment. Modern Canvas Malaysia is geared to become, Malaysia’s premium art gallery for modern and contemporary art.

Modern Canvas Sdn Bhd
No 3, Persiaran Hampshire,
off Jalan Ampang,
50450 Kuala Lumpur Malaysia

Tel:+6011 21156073
Contact person : Azillah