2024-04-25
In these difficult times, when inflation in the UK can reach 15% by the start of 2023, it is worth considering how we can protect our savings. Investing wisely in Polish art, as a booming area, based not on beginner's luck, but on the knowledge of experts, established not on hopeful prediction, but on sharp calculation, can pay off in the future.
Experts believe that art is an inflation-neutral asset. It can provide a defence to the value of our capital. However, in doing so, experts advise investing wisely, namely buying works by different artists, from different eras. Behind this advice there rests one of the basic principles of investing, the principle of diversifying an investment portfolio. When one venture makes a loss, another makes up for it, hence brings in a profit.
An investment in art can help broaden our already existing investment portfolio. Polish law is uniquely favourable in this area. If the sale of artworks by an individual takes place after six months from the date of acquisition and is not made in the course of their business activity, it will be exempt from income tax.
The Polish market offers a lavish variety of old, contemporary and recent art. The most common choices for experienced collectors in the country are works by well-known established creators of old and contemporary art, as well as works by emerging artists. Acquiring art of the former often requires a considerable financial outlay. And for that matter, this approach falls within the 'bracket' when by spending more we have the golden opportunity to earn the most in the long run. For the moment of time, such golden names include Stanisław Wyspiański, Jacek Malczewski, Magdalena Abakanowicz and Wojciech Fangor, whose works come at dizzying, yet satisfying price bids.
More to the case of recent art, it is a good idea to keep track of artists who have devoted their entire careers to art, who have received their first awards, and who have had their opening exhibitions. For example, a good 'compass' for identifying promising artists is the National Painting Competition "Bielska Jesień", a biennale where prizes were awarded to Ewa Juszkiewicz and Wilhelm Sasnal among others.
With that, the key is to remember that investing in art is most profitable when done for the long run. The highest returns on investment become regular within 5–10 years. Indubitably, the ideal situation is when art is a multi-generational passion. In this case, an art lover is left with the hope to inherit a painting by a famous Impressionist that had been bought by their ancestor 100 years earlier.
Lastly, it is worth mentioning that when investing in a work of art, always remember to keep all the transaction documents and the certificate. By buying works from reliable sources aka trusted galleries, auction houses or artists directly, and maintaining all the documents, you can be double-assured once you decide to sell them. A few tips in that regard.
Some skilful collectors attach the certificate to the back of the stretcher, as it is important to not damage the work. If a certificate seems suspicious to us, it is advisable to either ask the artist himself or the family to confirm its authenticity, or to refer your inquiry to an institution that deals with the professional sale of artworks.
At Artbidy, we work with experienced specialists in various fields of art, and it is with their help that we determine the authenticity of the pieces. Furthermore, we will help you choose a work of art that fits your budget, one that meets your expectations in terms of aesthetics and is distinguished by its artistic craftsmanship, but most importantly, one that shall make a good investment to bring you profit in the future.