A recent acquaintance with a flair for history and a passion for art told us of her unique method for developing an inheritance for her and her husband’s children.  Over the course of each year, they put aside a bit of extra money in a special fund.  At the end of the year they take all of the fund’s savings – sometimes it’s a little and sometimes it’s a lot – and invest it in a single piece of art.  The art is not stored away in some temperature-controlled vault but rather is hung around the house to be appreciated by all.

We were instantly and utterly drawn to this idea and thought it laudable to share! After all, it’s much more than a mere trust; When they pass along this investment to their children, they’ll not only be imparting an item that has (ideally) matured in value, but they’ll also be passing on some of their own personal style and interest to their future generations. We all know that an individual’s preference in art speaks volumes to who they truly are.

Granted, investing in art isn’t for the faint of heart as it can certainly pose a risky endeavor and, unlike stocks, offers little rationality in the form of equations or economic rationale.  Likewise, it can be easy to become intimidated by the vastness of the art world or to make chancy ventures on a whim of misinformed advice.

However, art investment offers an exciting hobby of which the fruits can be hung on the walls and the education is never-ending. Whether you once strolled through an art gallery or have extensive formal education in the area, the dynamics of the market indicate that there is always something further to learn. It’s also a considerable bit of fun and has the potential to bring about some rather stunning returns.  Some of our recommended sources for what’s happening in the investment art market are the Mei Moses Fine Art Index and the ARTnews periodical. However, regardless of the market trends, we strongly recommend investing in works that you personally fancy – that way, you won’t mind holding onto it while it grows in value (which may take a number of years) and, in the end, you can’t really lose.

Many are under the false assumption that if an item is old, it must be valuable.  In fact, we frequently encounter a misperception of a positive correlation between age and value.  “If it’s a century old, it’s worth this much, but if it’s two centuries old, it’s worth double!” However, this is not the case…at all.

The markets for early American and Victorian furniture have dropped off considerably.  Of course, top end antiques have maintained and, typically, will continue to mature in worth, but everything else in these genres are valued at a small fraction of what they were even only a decade ago.

However, it’s not all the economy’s fault! It’s also a result of the changing times.  The generation of “new money” that came into their wealth during the late 1990’s and early twenty-first century has a completely different approach to spending than the generations that came before them.  “Odds and ends” and “knick-knacks” are not only uninteresting, but completely off-putting. “Provenance” means little unless they are already enticed by the item’s design features. Such characteristics are not undesirable, but are directly linked to the massive shift in the antique world.

Now, rather than placing a high value on items that are two or three centuries old, the focus is on those contemporary pieces only two or three decades in age.  The boxy, vibrant features of mod-era ‘60’s furniture and artwork, as well as the chrome-detailed furnishings of the ‘70’s have grown rapidly in value recently.  Names like Eames, Nakashima, and Hirst create instant lust. Emptiness in the home or office space is now preferred to the previously appreciated organized chaos.  Some speculate this this trend, too, shall pass, but we’re willing to venture this is one swing in the markets that won’t be reversed anytime soon.