1. Art is not a liquid asset, it must be sold to yield gains.

2. You are more likely to see returns on higher-priced works like Mid-Century or Old Masters, but lower returns than on high-risk younger artists. So the upfront investment can be daunting.

3. There are high transaction costs involved when buying and selling at auction or from dealers. This can devalue your investment.

4. When holding a work over the long term, you incur costs (storage may involve a specially controlled environment, humidity and light etc. Also potential restoration costs.) Artworks do not generate income (other than by lending them out to museums, which also incur costs).

5. The value of art defies financial logic – art has little intrinsic value and thus is subject to the whims of the art market, its erratic tastes and short-lived trends. Again, not a problem if you know the market well, or are working with someone who does.

6. As the beauty of art lies in the eyes of the beholder, so does the value.

7. Not all art performs equally as an investment. It depends what the current market is looking at.

8. There is no official registration office or certification authority that can authenticate the ownership of individual artworks. There are, however individual foundations.

9. As an investor, you are on your own to perform appropriate due diligence.

10. It’s a high-risk investment. Prices of art fluctuate more widely than stocks.

Having said that, VoCA has some tips for those of you interested in buying art as an investment:

-Always buy art that you love.
-Invest with the advice of a consultant.
-Be warned against buying in an overheated market
-Be prepared to spend a lot on your purchase, unless you are prepared to take a big risk
-Never buy what you can’t afford to lose.

Good luck!