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The Advantages of Purchasing Investment Art during a recession

Investment art

Art investment is a non-liquid, alternative form of investment. It is usually part of an investment portfolio. An art investor aims to purchase a piece of art, keep it for years or decades while it appreciates and sell it years later at a profit.

Art has some qualities that other investments do not

For instance, you can hung it on the wall and enjoy it for years. Also, you don’t have to declare to the government regarding capital gains when sold by an individual, unlike the sale of stocks and bonds. Art investors seek to diversify their portfolio with an art investment. Some investment firms put about 5 to 10 percent of their investment money in art. They seek good advice and often buy paintings that are older and have been popular historically, such as paintings by the Old Masters.

An Old Master is an Artist who was fully trained, was a member of his local artists’ guild, and worked independently.

You can keep these investments over decades and sell off when the market is right. This way, the investor is seeking to get a 6 to 10 percent profit rise per year. These investments are also often made to hand over as an inheritance to future generations of the family.

“… fine art has outperformed stocks, bonds and real estate over the past 20 years. It has a low correlation with other assets, providing excellent diversification. It is portable so that you can take it with you around the country and across borders.Owning art through a fund that takes away this asset’s single greatest benefit: aesthetic pleasure. The paintings, prints and sculptures displayed in your home and office pay dividends every day. No investment provides more pleasure – or says more about you as an individual – than the art you display in your home.

South African paintings broke records at London auctions during the recession

In October 2010 Irma Stern’s oil painting, Gladioli, painted in 1939, caused a sensation when it sold for a record amount of R13.37m. In March 2011 3 paintings, they sold one by Irma Stern for R34 million. And, sold one by Alexis Preller for R8,4m and another by Gerard Sekoto for R6.7m. These all broke international records for SA artwork.

Again in 2012 a work titled ‘Red Jacket’, an image by Vladimir  Tretchikoff (1913-2006) of his muse and one-time lover in Java, made a world record price of £337,250 (R5.9m). Thus, proving that investing in South African Old Masters is an excellent way to hedge your investments, particularly in a recession.

Art is surely emerging as a new asset class for the well-diversified portfolio

The reported returns are enough to catch anyone’s eye: the index of fine art sales, used by art advisors to sell art FUNDS, shows an average annual return of 10% over the past four decades.
Investors are embracing art-as-an-asset-class.

South African Art is presently one of the top Investments in the Country. One can purchase artworks at an entry level of a few Thousand Rands. And, Old Masters are now fetching prices up to R12 Million Rands. (Find these figure by searching the Web on sites such as SA Good News – under, paintings or the Artists names).

Henry and the Henry Taylor Gallery Staff are available seven days a week to give you our Expert advice on purchasing South African Investment Art, to suit your pocket.

If you have any pieces of South African Art that you are looking for please phone us today on (011) 705-3194 or email all the details to news@henrytaylorgallery.co.za

John Meyer

John Meyer is one of South Africa’s leading contemporary realists. Born 1942, Meyer has put his indelible stamp on the genres of landscape, portraiture, and narrative art. Meyer became a professional painter in 1972.

Since then he has traveled extensively, painting landscapes from Nevada to Norway. He has exhibited consistently in the United States, Europe, and South Africa. Hence, developing an international profile that few South African artists have achieved. Over the years he has become a court painter to the rich and powerful, and his subjects range from Nobel Peace Prize winners Nelson Mandela and FW de Klerk to renowned concert pianist Vladimir Horowitz.

Since the early 1990’s Meyer has concentrated almost exclusively on what he calls the narrative genre. Enigmatic figures caught in emotional ambiguities – representing a new direction for his art.


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