Always wanted to invest in art, but didn’t know where to start?
It can be risky, so you need to do your research before you buy. If you don’t already have art education, visit museums, galleries, art shows, auction houses and online art resources to get a sense of the various art styles and movements. By doing so you could sooner or later spell the difference between a sound investment and a costly mistake.
1. Find out about up-and-coming artists
Many times, when artists are starting out, their work is more affordable because there isn’t a demand yet. If an up-and-coming artist goes on to a successful career, the cash value of their work will skyrocket.
2. Consider Buying Editions Instead of Original Artwork
Original artworks by established, successful artists are very expensive. Consider buying editions. An “edition” is an authorised print of a piece of art that’s produced in limited quantities. It allows a buyer to purchase artwork for a fraction of the cost of the original.
3. Ask for payment plans
Acquaint yourself with knowledgeable people in the field. Ask questions of curators and gallery staff. You might be surprised but some galleries offer payment plans.
4. Skip paintings or sculptures
What a work of art is made of affects purchase price. Drawings or photos are likely to be cheaper than paintings or sculpture, and photography can be an especially striking medium that is endlessly enjoyable to live with.
5. Buy what you love
Like stocks and bonds, art can increase in value. Experts recommend art investment for patient investors with a time window of 10 years or more, so think long term. And keep in mind that the art market has ups and downs just like any other market. However, the art market performed far better than other markets during 2018, as evidenced by numbers.
The best approach to art investment? Buy what you love. Consider the aesthetic pleasure first and the financial benefits second.
As many investors note, the worst case is that you’ll have a piece of art that you enjoy and that brightens up your home or office.