INVESTING IN ART

Are you considering buying art as an investment?

The fine art market continues to boom and is bouncing back dramatically despite covid-19. It seems that every day, another auction record is set for "the highest price ever paid." So, what does that mean for the painting you’re thinking of purchasing to go in your living room?

Well, as with any investment, you need to do your research and go beyond your comfort zone. The art market is fickle, and there are no guarantees of profitability, but with a little legwork and forethought, you can fill your home with images that may prove worthy assets down the line. Remember, the rarity of a work of art is what gives it value, so an original will always be worth more than a reproduction.

Global art market over last 10 years

Should you invest in art, where and how? 

It is personal. One should buy art you love, but also art which could potentially bring profit in the coming years.

You do not need to be a Millionaire to invest in art. Especially thanks to the influence of the internet and social media channels, the art market has become extremely accessible. In fact, young and new collectors represent a growing percentage of investors.

Anybody can see new artists, anybody can research an artist’s background or popularity, and anyone can buy art. Start small, get a feel for the market, evaluate the risks and do your research.

Is investing in art a Good Idea? Which paintings should one buy for investment?

Unlike stocks, an artwork is a long-term investment that will definitely pay off one way or another; if not through actual money, then through the pure pleasure of looking at it. If it is a profitable one all the better.

3 Guidelines for buying art for investment

  • While it is important that you divert your resources to investing in work that is known and widely accepted, you may also want to check on the work being done by emerging artists. While the risk is higher, the pay-out is usually much more if the artist you select happens to make it big. It's like gambling. However, it's also advisable to not park all your funds in emerging artists and have a mix.

  • Choose a category of art or style of painting that interests you the most. Focus your attention in studying that one category instead of randomly picking up pieces that appeal to you. The more you concentrate on one category (nature, still life, abstract, mythology, etc.) the better are your chances of making the right decision.

  • Do not rush with your investment. Divide your kitty into how much you would want to spend each year. This would also give you enough time to gauge the market response.