South Africa

^{Posted on Tuesday 26th February, 2008}

The Art of Investing in Art

^{Art as an investment is increasingly being considered as an alternative asset but the  majority of South Africans are still not sure how to enter the art game. When the First National Bank announced at a press briefing in Sandton last year, of their sponsorship of the first contemporary art fair in Africa to be held in Johannesburg in March 2008, it sparked the debate of the viability of art as an investment option.}

^{According to Robert Keip, CEO of FNB Investments, “With relatively uncertain global stock markets and interest rates that are set to increase steadily over the next 18-months, investors are now considering alternative investment avenues which include both art and wine as an option.” However, FNB maintains the decision to purchase art as an investment is not one to be taken lightly.}

^{“It is important to note that the art market is illiquid, opaque and unregulated. As such, this can sometimes pose as a problem when making the decision to use art as an investment vehicle. However, it is important to diversify your investment options and make sure that you have a balanced portfolio and art could be a good alternative,” said Keip.}

^{Contemporary African art showcased at the Joburg Art Fair will range in price from R1000 to R5-million. “We are confident that the price range available will allow a variety of individuals to gain access to this important asset,” says Keip. What makes art fairs so attractive is that they provide collectors with a single point of access to a wide range of galleries that have the credentials and experience to profile artists with an investment potential. There is also transparency – enabling the purchasing decision to be a little easier for potential buyers.}

^{Keip says one of the objectives of the Joburg Art Fair is to drive the reputation and sales of contemporary African art. “Art is big business all over the world – but less so here and we hope the Fair will offer South Africans an opportunity to participate in the art market.” The Joburg Art Fair will include a specially curated show by Simon Njami, chief curator of the highly successful Africa Remix exhibition, as well as the Africa stand at this year’s Venice Biennale. Njami is choosing a selection of art from artists throughout Africa who are not represented by galleries and all these will be on sale at the Joburg Art Fair.}

^{The Joburg Art Fair will be held from 13 to 16 March 2008 at the Sandton Convention Centre.}

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