The art of making money

By Adam Shaw

A good home for your cash?

The stock market's poor performance in recent times has made investors think a lot harder about finding a decent place for their money.

Sticking it on the wall in the form of art investments has long been one of the options.

But, as ever when share prices look dodgy, it's wise to do your homework when considering these so called alternative investments.

It's not a new idea - in the 1980s British Rail's pension fund invested £40m in art and managed to make a profit.

Problems

But the problem with all these types of investments - art, jewellery, racehorses - is that they present an alternative set of problems.

One Marks & Spencer's share is exactly the same as another. But one painting is not at all similar to another - even if they are by the same artist.

Galleries offer lots of choice

So investing in art and the other alternatives can be a lot more complicated than picking up the phone and talking to a stockbroker.

Art prices might rise but you could have the wrong type of art.

However, despite the risks these investments have their appeal.

If you'd bought a painting by Warhol, Lichtenstein or Jackson Pollock 10 years ago, you could have seen your investment rise by 32%, according to Art Market Report.

Portability

That's good but over the same period the FTSE 100 index has risen by 43%.

And of course even the likes of Jackson Pollock can't compete with the beauty of a rising share graph.

But gallery owner Acoris Andipa says art is always worth considering.

A print of Lichtenstein's The Revolver can be had for £1,600 and will slowly appreciate in value, he says.

One of the major advantages of some of the alternative investments is their portability.

Diamonds bring a sparkle to your portfolio

Carrying tens of thousands of pounds means a large suitcase and - if you need to convert it into foreign currency - a hefty commission bill.

A diamond however can be slipped in your pocket and sold almost anywhere in the world.

There are also some other nice things about investing in diamonds.

Lovely as all these things are it is unlikely that they will be suitable investment homes for the majority of people.

But a bit of sparkle is always welcome among the usual dull but worthy choice of investments.

The Leisure and Alternative Investment Show in London's Docklands showcases everything from wine and property to racehorses and licence plates.

"I think alternative investments by their nature appeal to a complete cross-section of people because you'll probably be attracted to something that's off particular interest to you," says the show's Julian Agostini.