Art Business - Is Contemporary Art a safe investment - Dissertation Example

The study "Art Business - Is Contemporary Art a safe investment" explores the contemporary art market and the method of investment in the art market and discusses whether it is safe to invest in the contemporary art market, also taking into consideration the traditional investment products. The international art market is particularly focused on providing the right values to art and antiques. The government has a significant role to play in this regard that supports the retailers involved in the system making it difficult to access.

Although parts of the system are supported by the government, but such supports are highly effective. The art market is mainly dominated by two companies – Sotheby’s and Christie’s. However there is no duopoly in the system and hence no effect on the consumers nor is there any cartel for fixing of prices. While the contemporary art market has emerged as a type of investment for individuals, there are the traditional types of investments still prevailing effectively in the markets. Financial markets are existent since traditional times offering several means of investments.

Financial markets are normally differentiated depending upon the types of investments, their maturities, the investments being made by the types of borrowers and the ones who are lending, market locations, and the means and ways of conducting the transactions. The financial markets are varied with the most essential being the money markets, capital markets, debt markets, equity markets, primary markets., secondary markets, derivative markets, stock markets, and over-the-counter markets. These markets not only provide with investment measures but are also competitive with each other (Besley and Brigham 2008).

The most common types of traditional investments include stocks, bonds, mutual funds, along with alternative investments such as Options, Futures, FOREX, Gold, Real Estate, and others (Investing 101: Types of Investments 2013). Over the last ten years, there have been significant changes in the industry of investment management. Several new methods of investment and investment products have been developed along with alternative methods of investments attracting more and more number of investors.

Such changes have taken place owing to the need to manage the changes occurring in the financial regulations information technology, and demands and preferences of the investors (Crowder, Schneeweis and Kazemi 2012). However, although there are several new methods of investment and products available for customers, the traditional investment methods are still popular and most people tend to use the conventional methods for making investments, of which stocks, bonds, and mutual funds are the