If it’s your first time investing in art, you might be wondering what to consider before making a purchase. The art market can be hard to navigate, especially if it’s your first time investing in art pieces. There was once a belief that only certain types of individuals could invest in art, but as time has gone on, people from all walks of life have started making investments.
Investing in art is a great opportunity to expand your knowledge and experience within the art world in general, as well as be able to collect your favourite pieces over time and grow your collection. With great planning and research come great results.
Regardless of your economic status, educational background or class, the world of art is open for anyone to enjoy and invest in. It’s great to see more people looking to invest in pieces of art, but do they know what to consider before investing? Read on to find out more.
Why Invest in Art?
Now that more people are investing in art, you might be considering doing so yourself. There are plenty of reasons why investing in art is a good choice to make. Individuals from all backgrounds are open to investing, even more so once they see the value in making an art investment.
If you’re looking for a smart investment to make, art investment takes the lead. You don’t have to have a great deal of knowledge about the art market to purchase art, but it does help if you spend some time beforehand researching different artists and the value of the artwork they produce.
Art is a reliable and long-term investment. Artwork holds its value over time, often increasing in price depending on the artist. Compared to stocks, art doesn’t fluctuate in price – only increasing as the years go by. It’s important to know that art isn’t a liquid asset, meaning it’s not something you quickly exchange for cash.
Another great reason why you should invest in art is if you’re looking for a new hobby or passion. People who show interest in art often end up considering art investments, with the aim of boosting their knowledge and understanding of how the art world really works.
If you’re intrigued by art from a certain time period or artist, you’ll be able to gain additional information by attending an auction house and talking with art advisors before investing.
The Best Way to Invest in Art
Before you go ahead and invest in art, it’s beneficial to sit down and make a clear plan. The first initial step any investor should make is setting a goal – whether it be deciding what you want out of your investments or how much profit you’re aiming to make.
Clarifying your goal helps pave the way for successful investments. Ideally, your goal should be to collect art for enjoyment purposes with the potential to make a great profit towards the end.
Once you’ve set a goal, it’s time to do some thorough research. Online resources are great when it comes to researching the art market, such as blogs, websites and videos. Exploring the web allows you to find the type of art you’re interested in and the different artists across the globe who produce work in the style you like.
When you’ve completed independent research, it’s good to have a second opinion on the choices you’re set to make. Seeking help from an expert within the industry allows you to gain a better understanding of the artwork you’re interested in and whether it’s achievable to be able to invest in it.
Another vital factor to consider is budget. Knowing your budget is essential before you decide on whether or not you want to invest. Art can be quite expensive, even when it’s not created by famous artists. Time and effort go into creating artwork, so there’s no wonder it sells at such high prices.
If you decide to work alongside an art advisor, both of you should be able to set a realistic budget. Most investment-grade artists have a historical valuation from previous auctions, making it easier to understand ROI (return on investment) over time.
Investing in Art: What to Consider
Is art a good investment? Put simply, yes it is. If you’re set on investing in art, having had it in your life plan for a while, there won’t be much to consider. However, if this is your first time taking the plunge and investing your hard-earned money in artwork, you’ll need to think about some considerations and whether or not this is the right decision to make.
Although artwork often increases in price over the years, it’s important to remember that this process takes time and you won’t make a profit straight away. More often than not, people begin investing without considering how much money they’re about to spend.
Consider whether or not the risks involved in art investment are worth it. Art is subjective – the type of artwork that’s popular today might not be sought after in a few years’ time. You’ve got to prepare yourself for the chance of the artwork you’ve collected not being as popular as you once thought it was.
It’s essential to plan where you’re going to keep your artwork and how much it’ll cost. Both storage and insurance cost is something that all investors need to take time to consider. Apart from paying for the artwork itself, you’ll also need additional money to keep your art in the right facilities for what can be a long period of time in some cases.
How Art Investments Can Help
Here at Art Investments, we’re dedicated to providing clients with the necessary information they need before investing. Our team of skilled professionals have a wealth of experience within the industry, making them the go-to experts when it comes to investing.
You can invest in art with a budget of just £3,000 – something which many of our clients find hard to believe. Investing in art doesn’t have to be stressful or challenging, it’s meant to be a fun and enjoyable process that you can continue into the future.
Our dedicated team will show you how to generate 8% to 12% from investment-grade art every year. If you need assistance in identifying investment-grade artwork, using an asset to combat inflation and bolstering your existing savings to name a few, look no further than Art Investments. To find out more, contact a member of the team today or visit our gallery to discuss investments in person.