For many collectors, artwork can be far more than something to enjoy and display for the pleasure of others. It can be a valuable and even important component of a well-diversified investment portfolio. Indeed, in some cases, art collectors can achieve substantial, non-correlated returns if they can acquire the requisite expertise in this often-neglected sector.
From a financial planning perspective, art collectors must be aware of the various financial considerations involved in acquiring, owning and selling artwork. Given the myriad investment, tax, insurance and estate planning issues associated with owning artwork, it rarely is sufficient for a collector to confer solely with an art dealer.
Collectors need to be just as vigilant as successful investors in stocks and bonds, with a thorough knowledge of the financial implications of owning such assets.
Collectors, for example, need to be aware that artwork, unlike some securities, can be expensive to buy or sell, difficult to value
Article source: http://www.fa-mag.com/news/a-dose-of-realism-21039.html