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Friday, February 25, 2011

Investing In Art or Gold: The Best Options During Economic Instability


"The question one must ask them self is, if the wealthy investors are hoarding onto gold bullion's and if currencies will be backed by the gold standard in the near future, then how does art come into the equation as a safe hedge against inflation? Firstly before one considers investing in gold they must understand that they need deep pockets, as a kilo bullion bar is currently trading at $45 000. Even after parting with such a huge sum, one must realise they can’t keep a $45 000 gold bullion bar under their bed, so monthly storage charges must be taken into consideration. Historically art has always been the alternative to gold.

During the period of high hyper-inflation in Germany which occurred after the First World War those who had invested in art came through that period better off, as the return on their investment in art-works out-performed investments in options that were available during that period. Most importantly art managed to beat the extremely high inflation rate, which would explain why so many art-works were looted during the Second World War.

As an alternative investment to gold, art has over years proven to be a real solid investment. With these uncertain economic times that we are in, its time to seriously consider your future by taking prudent pre-cautions to ring yourself against the effects of the current economic upheavals and events that are soon to come. In times of economic instabilities you are better off investing in art or gold." by Michael Takura

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