Some say art can save your soul, apparently it can save your body, too.
More and more people are turning to art as an investment as other possibilities fade away. Savings accounts barely provide any interest, Germany’s ten-year government bonds come with a 0.79 percent yield and Japanese government bonds only generate 0.49 percent.
Art is looking increasingly attractive – and it goes beyond the aesthetics. Paintings, sculptures and photography are becoming an alternative currency. In New York, Christie’s auctioned paintings for $853 million on Thursday – a new world record.
“Demand is increasing among our customers for art,” Peter Raskin, director of private banking at Berenberg told Handelsblatt. “They value the emotional connection in this form of investment.”
“There’s also barely any other way to earn money on the capital markets these days,” he said.
Investors hope that by buying valuable artworks, the value will increase significantly. In Germany, a casino sold “Triple Elvis” by Andy Warhol for $82 million and his “Four Marlons” for $69.6 million. Despite outrage in the art world at the loss of these works to the German public, the profits are a significant increase on an initial investment of $185,000 for two pictures at the end of the 1970s.
“The prices are high but I don’t see the market overheating for now,” Mr. Raskin said.