Historically, art has not been a good investment for most collectors.
Sure, a few high-end collectors have acquired works by the creme-de-la-creme of artists, which they have converted into very profitable sales.
For the most part, however, collector dividends have been in the daily enjoyment of the works they acquire. That’s not an unsatisfying reward. But it’s not cash.
Things may be changing.
In an day when CDs pay 1% and stocks are dropping like autumn leaves, you don’t need to make a killing to do better than most alternatives.
And, if you happen to be dealing with Australian dollars, that killing may be just waiting. A few years ago, the Aussie dollar would only buy as little as 60 cents in US dollars. Today, the Aussie dollar buys $1.04 US /-. So, that’s a turn of almost 100% on currency exchange alone.
William Waites, a US dealer in tribal art, with a sizable collection Australian Aboriginal art, observes, “At prices that were established when the Australian dollar was a lot weaker vs. the US dollar, our offerings represent big discounts for Australian collectors. So there is money to be made in art these days, especially Australian Aboriginal art.”
