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An investment standby in hard times, art boasts a healthy profitability that today's stock markets would kill for. According to estimates obtained at the latest Feria Internacional
de Arte Contempor�neo de Madrid / Madrid International Fair of Contemporary Art (ARCO), the value of a work of art goes up an average of 10% per year, a percentage comparable to that seen in the worlds of stamp and coin collecting. Yet many major players in the business agree that no one should invest in art hoping to get rich quick, or speculate short-term, as this can only lead to disappointment.

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Economic down-cycles have always benefited art investors. History has shown that sluggish financial markets have spurred alternative investments in tangible goods that investors can truly rely on. Plus, experts consider art a fixed value, immune to economic ups and downs. That is, a Picasso is always a Picasso, and its value will always be on the rise. And, of course, a tiny �lite has the Picasso market cornered.
Most art investors go after recognized works which are a sure bet, while looking into
new material with accessible prices and high potential for growth or reappraisal.

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Those who plan to buy works of art as an investment usually find them in galleries that provide high quality professional advice. As opposed to other types of investments,
which are overseen by powerful regulatory bodies and investor protection groups, art
is subject to many falsifications. Some try to get away with just about anything, so taking precautionary measures to avoid fraud is an essential part of being successful in the business. True, art investors need to be well-informed, but they especially need to heed
the advice of the market's top experts.

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Betting on art as a potential source of wealth requires a will to assume risk on the part of the investor, as well as creativity and a good nose for deals. Indeed, many great collectors have ended up selling off their first buys, as their tastes changed or evolved over the years.

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As an investment strategy, collecting art brings a certain satisfaction that is impossible to find in other financial activities, namely, the aesthetic pleasure of seeing the art hanging on the walls of your home. Another characteristic of this type of investment is that ultimately, the market rewards those who go against the tide, which has historically been the case of the most celebrated artists of our times.� The tide always turns back, making what was once a risky market one in which everyone wants to buy works that were shunned years ago. As with any investment, what really counts for an art collector is not to buy according to trends, but to have a knack for art and business in order to stay ahead of the game and make it work in your favour.
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A few pointers on investing in art
1. Steer clear of� generalist cultural advisors.
2. Choose a good professional representative whose ethics appear responsible.
3. Place your trust in a representative who knows your artistic and financial requirements.
4. Chart the size of your investments to your ability to save.
5. Diversify in artists and styles according to your risk profile.
6. Specialize in a cultural tendency, specialized gallery or an auction house.
7. Be wary of transactions performed without the proper documentation.