The Fine Art of Investing

I came across an interesting article by freelance financial writer, Ed McCarthy, in the May/June 2010 publication of the CFA Institute magazine, which asks the question: "Is art a good way to diversify a client's portfolio?"

Jeffrey Horvitz, Vice-Chairman of the Moreland Management Company has the following simple question for clients who want to start collecting art: "Are you nuts?"

"If you're asking the question 'should I invest in art?'" he continues, "you probably don't know enough about art to be investing in art."

In February of this year, Alberto Giacometti's sculpture, L'homme qui marche I (Walking Man I), sold for over $104,000,000 at Sotheby's, making it the most expensive work of art ever sold, and a harbinger of a possible resurgence in the art market. Besides the experience of time standing still while admiring a work of art, the allure of art has other motivations such as: the ability to display one's wealth; or to share with the public from a philanthropic perspective; or the possibility of substantial long-term investment gain.

For the rest of this week, I'll be exploring more of McCarthy's article on 'The Fine Art of Investing' so keep tuning in. If you'd like a copy, ask us at yourlifeyourplan.ca or call 250-868-5522.

GB