According to Forbes magazine, "Governments around the world will issue an estimated $4.5 trillion in debt this year." What is more, Nobel Prize winning economist Paul Krugman said the chances of their being a global recession is quite high, maybe 50 percent. With the world's economy turned upside down would not making an investment in contemporary art be the course of foolishness? Absolutely not!
Consider why. Many people enjoy the tranquilising effect of a superb glass of wine. What makes it so delectable? While there are many things that do not gain value with time, including hair styles from the 90's, wine and contemporary art always do. Why is this ? Consider one of the greatest contemporary artists of our time; Pablo Picasso. Before his death on April 8th, 1973 Picasso created hundreds of fine contemporary art pieces. Now here is a question: How many has he created since April 8th, 1973? Zero. Pablo Diego Jose Francisco de Paula Juan Nepomuceno Maria de los Remedios Cipriano de la Santisima Trinidad Ruiz y Picasso will never again produce another work, never.
Hence as time passes by his works gain more and more value with each passing day. For example, if you were to have purchased Picasso's Femme au Chapeau a Fleurs (Woman with Flowery Hat), an original red earthenware clay rectangular plaque after its creation in 1964 you may have paid a pretty penny for it. It's worth today? According to one fine art vendor you'd be sitting on £51,000. Would you be glad you had made such an investment despite the threat of a global recession? To be sure. Yes, as we know it to be true, an artist may craft masterpieces, works of wonder that inspire the spirit of the average man, all the while living in utter poverty. Ironically, sometimes it is only after his death that the artist begins to make his fortune.
While this may be a dark eventuality for the artist himself, it means huge profits for investors even in these difficult times. Despite the looming dread of a global recession on the horizon investing in fine contemporary art work is a very smart move. While the price of gold and diamonds may decrease, modern and contemporary art work only becomes more valuable with time.
Contemporary art investment with Compare The Financial Markets
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