Tumbling world markets have left the globe reeling and some investors looking to safe and alternative investments such as art - though that is not an indication that such investments are immune from taking a knock in this current crisis.
However, if fewer buyers take up the opportunities, demand is likely to diminish.
These are times for daring and savvy investors to find ways of increasing their net worth, despite all the odds.
Cecile Loedolff, art curator at Absa says art is a "brilliant" investment as it has proven to be stable compared with the stock market. "I'm astounded by the way art has grown in SA and how art pieces are fetching high prices," she says.
She emphasises, however, that buying the right piece is crucial. "It is important to know what you are buying and how much you are paying for it."
Popular pieces such as Pierneef or Irma Stern's works can easily fetch a cool million each on the market.
Robert Keip
"With the search for higher returns on investments, and the need to diversify investment portfolios in times of market uncertainty, investors are considering alternative investment avenues, of which art is a class of growing interest," says FNB Investment CEO Robert Keip.
"In addition, this is an investment that one can enjoy as it appreciates in value."
Before the recent increases in interest rates, investors were hard-pressed to find investment vehicles that could yield higher returns. Investment art falls in that category, though it is considered riskier by some.
Keip says art is still an attractive investment class with SA investors, in particular, and it is commanding high prices.
He says prices of collectable SA pieces at the recent SA African Antique Dealers Fair fetched as high as R2,5m for a Maggie Laubscher. A Tretchikoff was recently auctioned for R3,74m at Stephan Weltz & Co.
WHAT IT MEANS
 Art is an investment vehicle that can yield significant returns over time
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"Art is an asset class that can provide significant returns but usually over a long period. The average collector holds on to their art work for about 27 years," he says.
He says the growth in prices of SA art is driven by the demand, which is partially the result of people seeing art as an alternative investment class.
The positive response at this year's inaugural Joburg Art Fair is evidence of how much interest there is in this investment class. The fair has been set up as a celebration of local art and showcases a large local and African contemporary art collection under one roof.
At least 6 500 people visited the fair and sales of more than R25m were recorded. Plans for the second one in April next year are already under way and the response has been positive, says Joburg Art Fair director Ross Douglas. He says most of the galleries that took part in the inaugural fair have shown an interest in participating in next year's event.
Though he expects the upcoming fair to be another success, he is not "naive" about the realities of the present economic climate. "There is less money going around, obviously... but good work always finds a buyer."
He says "it's the work in the middle" - either from artists who are not well known or average work from the recognised - that is often difficult to sell. "It's about good work and not just a name."
As Luke Johnson, who runs a private equity firm, wrote in a column in the Financial Times: "The only reason you should buy art is because you like it."
However, talking to experts and acquiring a better understanding of art will also help an investor who wants to develop a valuable collection, says Keip.
And a visit to reputable art galleries and getting good advice from owners are two of the first steps that prospective investors can take as they educate themselves on what passes for good art.
Monna Mokoena, co-owner of Momo's Art Gallery in Parkhurst, Johannesburg, agrees that art, like any other investment, is a long-term one. But the difference is that with art one gets immediate gratification.
He says there has been a marked increase in awareness and demand for art as an investment class. "There are a number of individuals who have started collecting as a means of investment and have done very well."
However, he says one should not feel restricted to established names such as Gerard Sekoto or George Pemba.
Mokoena says prospective investors should also not overlook young artists, who are less exposed but can turn out to be good choices. "Of course, one would have to turn to professionals for guidance."
He says there has been a surge in black artists on the arts scene and that a sizeable amount of pieces sold at this year's Bonham art sale in London bore testimony to this.
He would, however, like to see more black investors coming to the fore. "Black investors should start to diversify their portfolios."
A recent article in The Flint Journal quotes a study that reviewed art auctions between 1955 and 2004 and found that "art had an annual return of 10%" compared with "stocks on the S&P 500 at 10,4%".
Though the global economic outlook remains grim, for bold market investors and wealth managers art is definitely an investment asset to consider.
