Wealthy's Art Investments Beat Stocks, Real Estate Over Last Decade (VIDEO)

Sick of losing your money in a volatile stock market?

Start buying art instead.

That’s been the strategy of the world’s wealthiest investors during times of economic uncertainty stretching back to World War II, CNNMoney reports. It turns out that investing in the art market has a number of perks that financial markets don’t.

Since the value of fine art tends to appreciate, it's an investment that can offer consistently high returns. As a result, art has often outperformed stocks over the last decade for the wealthy, according to CNNMoney. The idea has been backed by hedge fund manager and author James Rickards, who wrote in U.S. News & Daily Report that "the basic idea that... art outlast[s] and outperform[s] riskier assets such as stocks, bonds, and cash seems sound when viewed from the perspective of centuries."

Indeed, the amount international investors are willing to pay for art is a testament to its value around the world. China surpassed the U.S. to become the world’s largest market for art and antiques this year with a 30 percent share in the global market that's estimated to be worth about $60 billion in 2011, according to a March report by The European Fine Art Fair. Earlier this year, the royal family of Qatar made the most expensive art transaction in history by buying Paul Cézanne's "The Card Players" for $250 million.

And the purchases may only get bigger. Experts expect 2012 to be a big year for the art world with several famous works up for sale. Most notably, Edvard Munch’s iconic painting “The Scream” is being offered at auction by Sotheby’s Wednesday for an estimated $80 million.

Check out CNNMoney's video "Why the 1% loves Picasso" below:

Comments

[loki]

05:16 PM on 05/02/2012

there are more fakes that have been sold for real than in real estate. Watch an older film by the late Orson Wells , I think its called "F is for Fake." Even the so called "experts" admit they cant detect many of the fakes out there.

[somewhatodd]

03:30 PM on 05/02/2012

oh yes, the job creators buying and selling old paintings for higher and higher prices creates jobby jobs, like carrying them pictures to and from the trunks of limos and such.

[akrazyrunner]

02:39 PM on 05/02/2012

Every-time I see a picture of Rick Scott I think of that painting

[yoozum]

01:59 PM on 05/02/2012

That's nice and all, but art is not a liquid investment.

[american-dolt]

01:42 PM on 05/02/2012

The only reason the Rich buy it. They would actually hate the Artist and want them to pay more Taxes and get a real job.

[tomt]

01:13 PM on 05/02/2012

Art doesn't pay dividends . . .

[yoozum]

01:59 PM on 05/02/2012

It's also a lot harder to buy/sell than any financial instrument.

[KarmaPatrol]

01:02 PM on 05/02/2012

Can comic books, baseball cards, and Madame Alexandre dolls be far behind?