| | | Investing in art with a Sipps Pension
Things such as works of art, fine wines and classic cars are set to increase in value as anyone with a SIPPs personal pension will be able to include these items within their pension. This presents the economy with a potential investment time bomb as the prices for luxury commodities are set to rise by more than 20%. Companies trading in fine wines and art are already beginning to gear up for the forthcoming changes. Financial experts are suggesting that a potential a market bubble as a sea of money enters the alternative investment market. The Chief Executive of London based wine brokers, John Armit Wines, has described the pension changes as a one-off seismic event that could fundamentally change the fine wine market". Colin Henderson who is a partner with the Edinburgh law firm Anderson Strathern, has said the changes could fuel "an art boom". Using art as an investment is not a new idea. The art market has returned between 8% and 12% over the last 25 years. Experts also say that you do not have to spend lavishly to get yourself a good art investment. Many people assume that you need to buy a Van Gogh, Cezanne or Renoir which sell for many millions but this is not the case. You can invest in good quality art such as limited edition prints, new artists or even ceramics for less than £1000. Guy Peploe, who is the owner of the Scottish Gallery, says that investors looking to diversify their pensions should spread their portfolio widely. He recommends that people should consider buying work form young artists and states Damien Hirst as an example. "A spot or splatter painting by Hirst may have cost £12,000 in 1994 but would now cost you £200,000. |
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