3 Tips For Investing In Art
Investing in art is a wise move if you get it right – so here are some tips so you can do just that.
Step 1: Figure out what appeals to you; stay true to what you are passionate about
Have you ever experienced looking at a certain piece of art – whether it was in a friend’s home, inside of a building, or at a gallery – and felt completely mesmerized by its sight? Have you ever had any piece of art appear to “reach out” to you?
If you have, then you probably are already aware of the type of art that inspires your passion. Ask yourself why you like a certain piece. Do you like the subject matter, its composition, what it represents? Does it inspire you to think about life in a different way when you look at it?
If you are not sure yet, then you can train your eye to seek out what you find appealing about it. Visit galleries and take the time to become immersed in your local art scene.
Step 2: Figure out what you are able to afford
If you are an average beginning art collector who is just starting to invest, most likely you are already aware of the fact that you won’t be able to afford rare pieces of fine art that date back to the 15th century and are worth several million dollars. However, you can always aspire to obtain a masterpiece someday!
The best thing to do is start out small, and determine a reasonable budget to spend on your first couple of pieces of art, especially in the beginning – on a 5 year, 3 year, and 1 year time frame. Also, make sure to have realistic expectations on how much you can afford to invest in art, along with any hidden costs that are not visible upfront – including restorative care in case there is any tear, damage or wear, insurance (very important), transportation, cost of framing (if necessary), and taxes.
The highest-end items are sold by auction houses. Look at art houses and galleries to compare price ranges and see what they have. Find out what you can afford and what you like.
Develop relationships with gallery owners and staff, show genuine interest, and ask questions. Collection art involves relationships as well. Successful collectors are able to build close relationships with their favorite artists that they support and make the effort to understand what has inspired the work of the artist.
Step 3: Research your art investments
Aspiring collectors should look at investment-grade art, and not mediocre decorator art that doesn’t have any intrinsic value. It is very important to know what the difference is, especially if you’re looking to buy contemporary art. You can find decorator art in places like shopping complexes and hotel lobbies. Investment-grade art is what is found in galleries or major museums.
The artist is fairly well-known already and has a good reputation within the industry. There is value for the piece already. Its value might fluctuate, but there is already a visible mid-to-long term trend. It is expected that these pieces will appreciate over the long run.
Be prepared to do your homework. Make sure to ask questions about who the artist is, where she or he is from, where the person studied art and whether she or he is self taught. What type of press has the artist received? What exhibits have been held? How well known is the artist? Also consider things such as – what is the artist driven by, what inspired the chosen subject matter of the art?
Think about how the piece of art that you have an interest in fits in with your planned or existing collection. What is the best way to connect a purchase with purchases in the future, and how should your pieces be organized for presentation and display purposes?
Next is the actual work itself. Make sure you check on its condition – are there any signs of repair or damage? Is the piece signed, or are there any other alternative signs that prove its authenticity? Is there any vital information missing or is all of the accompanying documentation in good order? Those things can all impact the piece of art’s current value as well as its appreciation potential.