Collecting fine art is quickly becoming a more common method of investing and saving money. Putting your money into artwork can result in more of a return than a regular savings account, which is contrary to what most people believe. Many people don't think of fine art collecting when it comes to managing their money -- but nothing could be further from the truth. Here are some common myths about fine art investments and financing.

Some of the biggest myths concerning fine art collecting and finances are that it doesn't appreciate quickly enough to be a good investment. Also, a widely-held assumption and falsity is that art doesn't do well in a down-turning economy and that prints aren't valuable. This article dispels each of those myths and proves that art can be a suitable way to improve your investment portfolio.

MYTH: Art Doesn't Appreciate As Fast As Traditional Investments

TRUTH: This couldn't be further from the truth. A piece by Andy Warhol worth $1,000 in 2005 is worth about $3,250 today. Simply put, the art market is consistently showing impressive returns, often beating out traditional investments. Two business professors from New York University agree. Michael Moses and Jiangping Mei have complied and tracked the performance of fine art. The Mei Moses Index covers Impressionist, Modern, American (before 1950), and Old Master artists. "From last year, through the end of 2007, all our index was up 20% while the S&P total return was up 5%," says Michael Moses (co-founder, Beautiful Asset Advisors).

MYTH: Art Investments Don't Do Well In A Down-Turning Economy

TRUTH: Fine art collecting is known to be a recession-proof method of investing. Because art values aren't dependant on any country's stock market or currency, they can continue to appreciate over time, regardless of the current state of the economy. For example, foreclosures have crippled the real estate market, but fine art investments continue to do well. Well-known artists like Marc Chagall, Pablo Picasso, and Andy Warhol are some of the many whose works continue to appreciate in value. The reason for this is simple: these artists are no longer living, limiting the number of original pieces available for sale.

MYTH: Prints Aren't Valuable

TRUTH: An original, authentic, limited fine art print created during the artist's lifetime carries with it the value of being printed by the artist's hand. That is impossible to reproduce, and that is why it will always be valuable. When most people think of prints, they think of mass-produced posters that can be found anywhere. In the art world, a print has a completely different definition. An art print is usually produced in limited editions that are often hand-signed by the artist. Usually you can find a number such as 15/150 which means that your copy was the 15th numbered out of a total edition of 150 (frequently there are also a few artist proofs). Collectible works were printed under the artist's direction and with the artist's approval. The plates used to make the prints were almost always destroyed shortly after the printing run. This means they are in limited supply and it impossible to recreate an original.

When it comes to fine art collecting, there are many myths regarding art and investing. Art has proven to be a unique investment opportunity that is sure to appreciate while you enjoy its beauty every day.