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In these difficult times, when inflation is reaching 15 %, it is worth considering how we can protect our savings. Investing wisely in art, based not on luck, but on knowledge, calculation and the help of experts, can pay off in the future. 

Will investing in art protect our savings from inflation?

Some experts believe that art is an inflation-neutral asset. It can provide a defence of the value of our capital. However, in doing so, they state to invest wisely, buying works by different artists, from different eras. Behind this advice, there is one of the basic principles of investing - the principle of diversifying an investment portfolio. When one venture makes a loss, another should make up for it or make a profit. 

An investment in art can help to broaden our already existing investment portfolio. Polish law is uniquely favourable in this area. If the sale of works of art by an individual takes place after six months from the date of acquisition and is not made in the course of his or her business activity, it will be exempt from income tax.

What to invest in and for how long?

It is possible to buy both ancient, contemporary and recent art on the Polish market. The most common choices for experienced collectors in the country are works by well-known names of ancient and contemporary art and works by emerging artists. Acquiring art of the former often requires a considerable financial outlay. It is, however, in this "bracket" that by spending the most, we have the opportunity to earn the most in the long run. Currently, the prices bid for works by Stanisław Wyspiański, Jacek Malczewski, Magdalena Abakanowicz or Wojciech Fangor can be dizzying.

In the case of recent art, it is a good idea to keep track of artists who have devoted their entire careers to art and have had their first awards and exhibitions. For example, a good "compass" for identifying promising artists is the National Painting Competition "Bielska Jesień", a biennial in which prizes were awarded to, among others, Wilhelm Sasnal and Ewa Juszkiewicz.

It is worth remembering that investing in art pays off most in the long term. The highest "returns" on investment are sometimes seen after 5-10 years. The ideal situation is a multi-generational passion. Probably every art lover would like to inherit a painting by a famous Impressionist painter that was bought by an ancestor 100 years earlier.

Safety

Lastly, it is worth mentioning that when investing in a work of art, always remember to keep the documents from the transaction and the certificate. By buying works from reliable sources, from trusted galleries, auction houses or directly from artists, and keeping all the documents, we can be reassured when we decide to sell them. Some skilful collectors, attach the certificate to the back of the stretcher, for example (it is important not to damage the work).

If a certificate seems suspicious to us, it is advisable to ask the artist himself or the family to confirm its authenticity, or to ask for help from an institution that deals with the professional sale of works of art. At Artbidy, we work with experienced specialists in various fields of art, and with their help we determine whether a work of art is authentic. Furthermore, we will help you choose a work of art that: fits within your budget, meets your expectations in terms of aesthetics, is distinguished by its artistic craftsmanship and is a good investment that will bring you a profit in the future.

Added 2022-08-12 in by Alicja Graczyk

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