Interesting Comment on Investing in Art

Li-Min Lim of Bloomberg reporting on the recent Sotheby's sale mentions a record price for Chinese master Lin Fengmian which sold for a record $20.5 million. The sale appears to have gone well with most lots selling. Four of the sales had sell through rates of 77%, 89%, 80% and 74%. Again showing the strategy of fewer items and better quality is working.

The interesting comment from the sale is due to economic reasons, investors are starting to look at art as a safe haven for investments.

Lim reports Investors are converting currency into tangible assets, including art, on concern the multibillion-dollar stimulus spending by governments aimed at ending recession would cause inflation, dealers say. Governments and central banks in 19 of the largest developed countries are spending 43 percent of their gross domestic product to end the worst crisis since the Great Depression, the International Monetary Fund said on March 6.

“It’s safer to hold good assets, such as artworks by established artists, than currency,” said Tian Kai, a Beijing- based art dealer, who flew in to attend the auction.

Lim also mentions sales of the master Chinese outsold and out performed those of contemporary Chines artists. To read the full article, click HERE.