Is Art a Good Investment

Is Art a Good Investment?

In the present day, people strive to make money wherever they can. The popularity of art as a prosperous business has increased in recent times. Thus, more and more investors take advantage of the art market as an alternative to conventional investment assets. However, scholars tend to claim that art is a terrible investment since it is not immune to the crisis, has a zero cash flow, and no inherent value.

First of all, it is essential to note that art is not immune to the crisis. As an example, when in 2015 economy slowed in China, its art market slid considerably (Is Fine Art a Good Investment?). As a result, there increased the number of unsold lots. Investors experienced negative earnings. Therefore, the art market is not stable, making it a terrible investment.
What is more, the art market has a zero cash flow (Ferro). To acquire art is gambling indeed since the person who is not good at all trends and strategies of art, can lose much money. It means that the person makes a massive investment in this business, but it isn’t very easy to get back the money (Korteweg, Verwijmeren, and Kräussl). Therefore, if the person has a restricted sum of money, it is better not to invest it in art.

Finally, it is essential to keep in mind that art has no inherent value (Ferro). It cannot be recurrently marked to some market cost. Therefore, investors can lose money or not get it back.
All in all, art is not a good investment since it presupposes considerable risks for investors to lose money or not get them back since art is vulnerable to crisis, has a zero cash flow, and no inherent value.

Works Cited

Ferro, Shane. Why ‘Investing’ In Art Is A Terrible Idea. Business Insider, 2015. Accessed 8 Oct. 2018.
Is Fine Art A Good Investment?. BBC News, 2016. Accessed 8 Oct. 2018.
Korteweg, Arthur, Patrick Verwijmeren, and Roman Kräussl. Research: Is Art A Good Investment?. Stanford Graduate School of Business, 2013. Accessed 8 Oct. 2018.

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