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Investors cash in on art

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Good paintings make a big difference to a living room, but art is much more than a decoration - it is also an investment.

But, while Hong Kong people are experienced in investing in stocks, foreign exchanges and property, the world of art is different. That is why some companies are providing an end-to-end art investment service, with direct connections to the Chinese art world and international investment specialists.

'We believe the greatest potential is with mid-career artists, who have already proved their artistic talent but in many cases can be undervalued in relation to supply and demand,' says Jon Reade, director of Art Futures Group in Hong Kong.

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The art investment company's clients cover a broad spectrum, from experienced investors to people looking for a gift that not only looks fantastic but also holds an increasing intrinsic value.

'Emerging artists are very much a lottery in terms of investment potential, while blue-chip artists, although likely to show steady growth, will generally cost many millions of dollars,' Reade says.

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'Just recently, we sold a piece by mid-career artist Shen Jingdong that was originally part of a series of three. We were contacted by a Hong Kong resident who had previously bought the other two pieces and, since he was happy to pay a handsome premium to secure the missing piece in his jigsaw, our client almost doubled his money in less than six months.'

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