Global Economic Situation
According to reputable financial magazines, data indicates that the global economy is slowing down. The International Monetary Fund (IMF) and the World Bank (WB) forecast that global economic growth will stabilize at around 3.2% in 2025, lower than the long-term average. The main reasons for this slowdown include geopolitical tensions, increased trade protectionism, and pressures from major economic policies.
Although global inflation has cooled compared to 2023, it remains above target levels in many countries. The IMF forecasts that inflation will decrease to 5.8% in 2024, compared to 6.7% in 2023, and continue to decline to 4.3% in 2025.
The global financial system also faces numerous challenges, including the risk of a debt crisis as total global debt reached a record $307 trillion by the end of Q2 2023.
Is Investing in Art a Safe Choice?
Amid economic instability, many investors seek alternative investment channels such as art. Art Investment is the process of purchasing artworks not only for aesthetic enjoyment but also for future profit. Art is considered an alternative investment, similar to gold, real estate, or cryptocurrency.
However, art is not a “safe” investment in terms of high liquidity and low risk. The main risks include:
- Low liquidity, as selling an artwork can take months or even years.
- Subjective valuation, making it difficult to determine exact prices.
- Market trend sensitivity, as art trends can change rapidly.
- High maintenance and storage costs.
Who Should Invest in Art?
- Long-term investors: Art is best suited for those willing to hold onto pieces for many years.
- Knowledgeable investors: Understanding artists, styles, and auction history is crucial.
- Financially stable investors: Art investment is ideal for those who do not need immediate liquidity.
Art investment is an alternative form of investment that offers potential returns but also carries significant risks. It is a market best suited for collectors with deep knowledge of the industry or those who have professional advisory support.
V.T
