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Valuable Resources On Comparing The Stock Exchange To Fine Art Investment

Article by David Tatham

You could be pardoned for considering whether or not you should withdraw all your cash from all of those so-called “risk-free” vehicles and stuff it below your mattress, one way or another. Could it be preferable to sleep on top of your money in this way than to subject it to the vagaries of the stock exchange? It appears that those who are in charge of tending to your cash in these places are frightened of their own shadow. One particularly bad economic headline and the stock market tanks. A couple of comparatively positive items of news and all of a sudden everything is sweetness and light. Exactly what are these folks doing, we sometimes ask ourselves?

It is a sad fact of life that we can’t expect our money to build if we simply let it sit in a passive medium. It’s most certainly not likely to grow in value when we leave it underneath our mattress, but just where should we turn if we’re planning to try to get an acceptable level of growth in our cash?

Two professors at the New York University have put a great deal of effort into trying to determine whether or not fine art was a solid investment over time. They assembled information covering 9000 art pieces, by studying the original sale price and then any repeat sale price sometime in the future. They were therefore able to compute the appreciation based on those two sale prices and work out what sort of yearly return this would signify. It’s a beneficial piece of work as it allows us to compare the overall performance in many respects of fine art as an investment against those ubiquitous stocks.

One of the more recent updates during the summer of 2011 shows the Mei Moses World All Art and “two month moving average” to be consistently in front of both the S&P 500 and the Financial Times All Share Index. Indeed, we’re able to see that this art index returned 10.5 % each year over the last half a century which measures up very positively with the S&P 500 over the very same period of time.

Intriguing statistics. Of course there are numerous questions whenever you invest, but observing just how erratic stock market trading indices seem to be, maybe a fine art investment is a great way for you to diversify your portfolio with a bit of reassurance depending on an examination of that specific Index. One way that you could think about getting into the market is by purchasing signed limited edition prints, which are becoming ever more popular these days.

Do your homework to start with and definitely don’t hesitate to ask questions of the professionals in these areas. There are a lot of prospects for investment here and, after all, you’re likely to get a great deal more appreciation of your money at work this way when you’re able to look at your assortment of art pieces on the wall of your house on a daily basis. Appears to be more fun than watching the evening news and learning about the most up-to-date fate of the FTSE!

David Tatham has been involved in the art world for over twenty five years and . His website contains a wealth of information, also many signed, limited edition prints and original works of art by world famous artists,eg. The conservationist and wildlife artist, David Shepherd http://www.davidshepherd.com .










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