As we move into 2024, people are now more into investing. They want a better outcome in terms of money.
Therefore, they always look for an investment that is secure and reliable.
But the question here is: Do we even have any safe investments?
Well, we do. An art investment is considered a well-founded investment that may yield a better outcome.
It is buying an art piece with the thought that the market value may increase with time and you can sell the painting at a higher price than the original value you purchased.
Now that you know what investing in art is, how about we look into why, how, and when to invest in art?
Table of contents
Why is Investment in Art Valuable?
People are mostly stuck with the question of why art investment is a valuable idea.
To clarify this thought, I’ve curated a few points that might help you in the right direction.
Long-Term Investment
The most important reason why investing in art is valuable is the worth it holds over time.
Unlike other things, art values do not vary with the fluctuations in the market.
This was especially true during the 2020 pandemic, where other markets saw a big shift while the art market remained firm.
But with pros come cons, which you cannot ignore, especially while investing.
Although art is a reliable long-term asset, it is also important to note that it is a non-liquid asset.
In simple terms, you cannot quickly exchange artwork for cash.
To liquidate your art, you should have an art appraisal or art consultant who can help you find a buyer. This makes the process a bit easier.
Passion For Art
Another reason why people invest in art is because they are truly captivated by it.
When you invest in something that you’re passionate about, you eventually do all the research on it.
In this way, you know the value it may hold with time and help you gain profit.
Now that you know the two things that answer why you should invest in art, how about we have a quick read through how to invest in paintings?
Suggested Read: Guide on Art Insurance & Policies
How to Invest in Art? (4 Proven Ways)
Most of the people face problem in how should they start the investments in art.
Therefore, I’ve brought 4 ways of how to invest in artwork.
Define Objectives
The very first step is to clarify your goals towards investments in art.
Ask questions such as:
- What are you expecting out of this investment?
- How much profit do you want to make?
- Do you want to make profits or is it because you’re enthusiastic about art?
- What could be the best artwork to invest in?
- Does that type of art benefit you?
Setting a goal for yourself will let you focus on how to start investing in art.
Analyze & Explore
Once you’re clear with your objective, start exploring the artwork you would like to invest in.
We all know that art industry is another world all together.
Therefore, it is important to know what you are really looking for in your art collection.
Suggested Read: Best Online Art Galleries
Set Your Budget
How much to spend is always appreciated while investing in art.
We all know that artwork costs a fortune but that is not the case with every art piece.
Have a clear idea of how much you’re willing to spend and set your budget accordingly.
In this way, you won’t end up investing more and receiving less.
Consult an Expert
After doing independent research, consulting a professional is always preferable.
The person can be anyone—an art dealer, private collector, or gallery owner.
The most important thing to note is that they are experts in art and will always recommend the best for you.
When Should I Invest in Art?
It is generally advisable to invest in art when the prices are low and sell when they are high.
Well, it may sound very easy but it requires a lot of strategy and planning.
For starters, there are three types of artists whose art pieces you can invest in—emerging artists, established or mid-career artists, and blue chip artist.
The earlier an artist is in their career, the more affordable they are to invest in.
However, there can be a higher risk involved in whether the artist’s work will be valued more in later years or not.
And if you want to be secure, then you can always choose an established artist.
The art pieces could be expensive but the risk is far less than the emerging ones.
At last, you can always look for blue chip art or artists as well.
Blue chip artists are the renowned names that come with the highest prices ever sold.
Artists such as Picasso, Leonardo, Monet, and Cezanne fall into this category.
Although the price would be higher, the profit from the investment is guaranteed.
Suggested Read: Guide to Art Copyright
Conclusion
I’ve covered all the aspects that come up when you’re looking to invest in art.
Artwork investment could make you wealthy if you invest in the correct way.
Remember to research or consult before getting yourself into something.
Follow the steps mentioned above and I’m sure you’ll be in profit.
There are even platforms like PortraitFlip, which sells handmade paintings, which could be an amazing investment in terms of emotional and personal feelings.
I hope the blog conveys the information you were looking for.
I will get back with another blog soon. Till then, invest wisely!
FAQs
Yes, investing in artwork is a reliable and good decision, as its value increases over time.
Blue chip artists like Pablo Picasso, Vincent Van Gogh, and Andy Warhol are best when it comes to investing in paintings. They have zero risk and a profitable return.
If we talk about investing in contemporary art, then the average return recorded over 38 years of time is 7.5%, which is seen as a good percentage.
