How to Profit from Investing in Art

Most people who collect art do so not just because they like a particular artist or their subject matter, but because many artistic pieces, whether they are paintings or objects, appreciate in value. Not all art lovers make their investments for profit, but if they know enough about what they are buying, and what other people think a piece is worth, they soon become savvy investors.

Art as an Asset

Over the last couple of hundred years art has become a means of accumulating wealth to those in the know. The current, global economic crisis has resulted in a volatile stock market and left many nations with huge debts, these things have driven investors to search for what is termed hard assets. Hard assets are those things which you can physically see and touch, property being one such asset, and art another. In recent years investors have boosted the strength of their investment portfolios by purchasing art.

Art can be a good hedging strategy in times of economic turmoil as the movement of its price is a lot less likely to be affected by prevailing economic circumstances. The best performing art sectors, experts claim, can bring the investor an annual return of up to 20%. Along with its monetary value art is good to look at, although this type of investment may not be to everyone’s taste. If you are new to investing and to investing in art below are a few ideas on how you might enjoy and profit from such investments.

How to Get Started

One American art company says that most people who invest in art begin with anything from $2,000 to $10,000 and they should use their budget to find what they see as the best work, by the best artist at a price within their budget. Older works from recognised artists is usually the best way to start investing in art, as unknown works from new artists can pose more of an investment risk. Investors need to recognise that there is a certain amount of subjectivity concerning what constitutes a good work of art.

Get to Know Your Subject

Spend time looking through art books and visiting galleries to get a feel for the type of art that appeals to you and which others may see as valuable. If you want to profit from your investment then you need a feel for the type of work that you like, then you can consider getting the best piece at a cost within your price range. Finding something that ignites your passion is the best way of investing in art, if you don’t appreciate what you are buying, not only is it not worth your time, it also increases your level of risk.
If you can afford it, it may benefit you to take an art appreciation course at one of the famous auction houses, such as Christies. The auction houses and high street art dealers are good places to go for advice on investing in worthwhile pieces and making a profit.

Aug 28, 2012
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