Investing in Art can have Big Risks, Big Rewards

Two decades after his death, Andy Warhol, a larger-than-life artist known for hype and breaking boundaries, might even have been shocked by the recent $71.7 million sale of one of his paintings.

The Pittsburgh native who became an American legend represents the gold standard of the today's high-priced art market, but when his works were initially bought, their prices were in the mere thousands.

Art as an investment can be very lucrative, and extremely risky.

"There are very few things that can't be put in an IRA," said Jeff Desich, vice president of Equity Trust Co. in Elyria, Ohio. "Artwork is prohibited from being purchased by a retirement account.

"By not being able to include art in an IRA investors won't be able to shelter the profits. The huge benefit of a self-directed IRA is being able to shelter all the profits."

Read the full article here: http://www.post-gazette.com/pg/08146/884481-28.stm