The Art of Investing: Investments in Art MILLWOOD KANE INTERNATIONAL
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Investing in art is becoming more popular with the rising of new and alternative artists turning the heads of many. However, this type of investment can be very different from investing in stocks and bonds. This is an alternative investment option resulting in portfolio diversification and offers an option for succession planning due to the long term investment nature, where the likelihood of the value of an old painting increasing is high. Another benefit of art investments is that it is not sensitive to interest fluctuations directly, and it is a global investment - you can sell a collectible almost anywhere. Where the conflict occurs with this type of investment lies in the lack of knowledge about the art world. It is important to find which pieces resonate with you and balancing that with a piece that will appreciate.

With the UK being the leading country in Europe in terms of turnover and market share in this art industry, other countries have also seen a boom of interest.

Cyprus is one of these - “In the last decade artists have migrated back to Cyprus after being exposed to different ways of working and being an artist, and that’s challenged them,” stated by writer Maria Petrides. This has created an art hub in Cyprus for new talents and ideas backed by the opening of many galleries and the presence of Biennale last month.

One of the latest galleries is the Bluchip gallery located in the Radisson Blu Hotel Larnaca. With the hotel attracting international business people, the store also gains exposure to its international market. The operator of the gallery - James Demetriou stated that “international customers appreciate the value of the art, and understand the history of the art enough that it becomes an investment and not a purchase.

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Bluechip Gallery, Radisson Blu Larnaca

 

The gallery is home to pieces by international artists as well as local artists. It exhibits new designs, focusing more on abstract art and unusual pieces, truly a depiction of millennial vision. This brings attraction to the new local talent of individuals who have travelled and engrained their experiences and new skills into interesting pieces.

Investing in art in Cyprus can also take place through a fund. If an increase in value is what you are after, creating an alternative investment fund to collectively invest in pieces allows opportunities of further diversifying your investment and generating investments of higher value. Shares can be bought and sold of this fund similar to stock in a company. An incentive of this is that any profit made from an art fund is free of capital gains tax. This is also a way of protecting your assets and collectibles as it is ring fenced against any liabilities. Lastly, this method of investing in art also contributes to the succession planning aspect. The shares of the fund can be passed down from generation to generation and also transferred to other family members.

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