What Will Save Us?

    To paraphrase the ubiquitous movie trailers ---“in a world gone mad – where banks are closing, stocks are crashing, real estate is in a freefall – what is a mere mortal to do? What will save us?” Melodramatic? Well, there is a simple and time proven answer --- Fine Art.

     In times of economic turmoil and war, the only commodity to not only sustain its value, but increase it, is Fine Art. This is not the stuff of fiction or fantasy, but reality. Why does art beat stocks in wartime or economic recession? The art market is a prudent area for shelter and long term investment during those times. There is a historic rise in the art market during times of economic chaos, terrorism, and war. Art becomes a safe haven for investors who take flight to tangibles.

     The October 2001 New York and London auctions, a mere month after the September 11^th attacks, sold 90% of their lots and it continues as strongly today. What does this say? Perhaps stability is a better path than volatility. With investors shying away or even shunning the stock market and real estate there is what a former Sotheby’s CEO says, “Bags of money out there for art.” This is not unique to Americans, as the new age of investors/collectors is emerging from Russia, China, India and the Middle East. This represents a shift from the traditional paradigm of almost exclusively Western involvement to a new global market.

     Ultimately, what does this mean for the mere mortal?  One can still acquire a Fine Rembrandt or Picasso under $10,000.  Remember, by working smart, and with a professional art advisor, a $6,000 or $7,000 investment in a Picasso lithograph, over time, will reap a benefit, not only financially, but most certainly cerebrally, and why not?  Fine Art has a proven track record in times of economic chaos and what could be more meaningfull than sharing our lives with Mr. Picasso or Mr. Rembrandt?

Robert Vehon

Fine Art Consultant

October 16, 2008