Investing in Art: Art is being incorporated into the investor’s overall asset allocation decision. There are many ways of investing in art via Auctions, Online auctions, Art gallery and Online portals. A few things an investor must look into:
• Art buyers should gain as much knowledge as possible of the artist’s work, the quality, provenance, condition and period in which it was painted before investing.
• Have a clear idea about the time horizon and gestation period for a particular work to appreciate in value.
• If an investor is looking for quick returns, he must buy works of well-known artists. If you like a less famous artist’s work and are prepared to wait, your returns might grow majorly over a period of time.
• Buy art only if you like the quality of work and not just the artist. Art requires careful maintenance.
Investing in Fine Wine: Fine Wine is another popular means of investment. Wine purchased as an investment is typically obtained from a reputable wine broker since wine houses do not generally sell directly to the public.
Advantages and Disadvantages of a Wine Investment: Being a physical commodity, it is not affected by the stock market, company bankruptcies, fraudulent activities, major market shifts or even poor management. Wine Investment provides legitimate ways of exemption from capital gains tax, VAT and import and export duties. Like other tangible investments, wine provides a good means to diversify a portfolio. Fine Wine increases in quality with time, hence its value continually increases.
There are several disadvantages: Wine Investment Market is difficult to understand and analyse. Wines are not always priced based on their value, but on the basis of their demand, which in turn is dependent on several unstable factors. In order to store and preserve wines, investors tend to incur sizeable expenses.
Investing in Gold: Gold is regarded as the safest type of investment as its value is not affected by inflation, unlike other assets. Due to the rapid growth of the world economy and the uneven rise of geopolitics, there is a lot of uncertainty involved regarding other modes of investments and hence most businessmen these days believe that gold, or the yellow metal as it is often referred to, is the safest bet when it comes to investing.
Advantages and Risks of investing in Gold: Apart from being the most basic type of saving, gold is also an integral part of religious and social tradition, especially in India. It is the primary metal used for ornaments. Gold is indestructible. It is advisable to buy gold in the form of gold bars or coins from approved dealers instead of jewellery. While selling ornaments, value is lost on making charges, waste removal and sales tax. It is not advisable to buy gold during wedding seasons or during festivals like Diwali. Also, when investing in a gold deposit scheme, one loses the making charges.
Source: http://loans.msn.bankbazaar.com/guide
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