“Two things that are valuable in the craziest times of hyperinflation are real shortcomings,” says investment guru Jim Cramer.
Jim Cramer, well-known financial analyst and host of the popular CNBC show “Mad Money,” is a personality known for his outspoken opinions and a proven track record in the financial markets. Kramer has recently researched the art market and its potential as a solid investment option, particularly in times of inflation.
in one of the episodesHighlighted Kramer antiques, a company that offers investors the opportunity to buy shares in individual works of art. This approach allows people to participate in the art market without having to acquire full paintings, making it an accessible option for those interested in diversifying their portfolios.
Kramer says that not many people know that he once owned an art gallery. He explained that he had always said that “the two things that have preserved their value in the most insane times of hyperinflation are real palaces and works of art.”
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An important advantage of investing in art, according to Kramer, is that it can act as a hedge against inflation. Unlike traditional financial markets which can experience large fluctuations during periods of inflation, the value of art tends to rise over time. This flexibility is due to the tangible nature of art as an asset, which makes it less vulnerable to the volatility that other markets experience.
The concept of scarcity in the art market also plays a crucial role in its ability to estimate value. With only a limited number of artworks available, the demand for these pieces remains constant or increases over time. As more collectors and investors seek quality art, the value of found pieces tends to go up.
The introduction of platforms like Masterworks, which bridges the gap between art and investing, is a game-changer. It allows everyday investors to diversify their portfolios and take advantage of the benefits that art can offer. By enabling partial ownership and utilizing an expert team of research and audits, Masterworks has opened a new avenue for investors to participate in the art market. This previously exclusive asset, once only available to the very wealthy, is now possible for a wider audience.
According to Masterworks data, the contemporary art market has shown an average annual return of 14.1% over a 26-year period. This statistic underscores the platform’s higher earning potential, which could tempt clients willing to take some extra risk in pursuit of big returns.
In addition to the financial benefits, investing in art brings a special kind of joy and appreciation. Especially in moments of economic uncertainty, the beauty and cultural significance of art can provide a sense of solace and stability, creating an additional dimension of value for art investments.
In a world where traditional investment options may face challenges during periods of inflation, art is emerging as a viable alternative. Kramer’s insights highlight the potential benefits of art as a tangible asset, a hedge against inflation and a source of aesthetic and emotional fulfillment.
As with any investment, a considered approach and awareness of market dynamics are essential to maximizing the potential of art as a valuable addition to an investment portfolio.
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