Mehmet Subasi, the art gallery owner, spoke to Anatolia News Agency about his views on investments. He stated, “The art market is one of the best ones where money flows because artwork has become the best-yielding investment of all time.”
Subasi added that there is some risk involved, but that gut instinct for what will become more valuable over time plays a large part in making good returns from art investment. He explained, “The works of young artists may bring more profit while the works of popular artists bring 10 to 20 percent profit. Seeing and feeling the unknown and investing in it brings the highest profit.”
AAA, an alternative investment advocacy group, has been promoting investment in alternative asset classes, such as fine art, antiques, commodities, real estate and forestry, for months. In the current economic climate, with volatile stock markets and high inflation rates, the alternatives can offer an effective hedge against inflation as well as an asset that has a low correlation with the equity markets. This means they often deliver higher returns when stocks and shares are losing value.
AAA’s analyst partner, Anthony Johnson, said that alternative investments are not, however, just about generating strong returns. They can also be about making an ethical choice: “Forestry investments, for example, can provide investors with strong returns, but can also help developing countries to protect their natural forests by encouraging them to see the value that can be achieved through sustainable forestry.”
Greenwood Management, for example, offer people the chance to invest in fast-growing non-native tree crops in Brazil, that help to provide the local steel industry with alternative charcoal to that made from native trees.
Mr Johnson added, “AAA is always pleased to hear experts, like Mr Subasi, speaking out in support of alternative investments.”
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