Trying to buy art as an investment can seem like navigating a cavernous labyrinth without a flashlight. There are so many choices as to which way to go, which style you like, which style is popular, which style will appreciate the most, and what form of art to choose. For many, the choices alone are enough to turn them off investing in art and dump their cash into a savings account earning a couple of percent just for ease of decision-making. However, for those who really want to make a buck or two in the art world, unless you have the Midas touch for turning every art piece you touch into gold, it is going to take a little bit of effort on your part to make an informed decision.
This first step to investing in art is making sure that you take full advantage of the resources available to you that can help you learn about the types and styles of art out there. Talking to art dealers (bearing in mind to take what they say with a grain of salt since they are in sales), other artists, reading newspapers and magazines, doing online research, and attending galleries and openings are great ways to learn about art. In general, just as you would with any other type of investment, you need to do your due diligence before slapping down your money.
If you find something you like or feel would be a good investment, learn as much about the artist as you can before you buy their work. Ask yourself, does this person have potential? What is their artistic background? What have they charged or have people paid for their previous works? Is this person well known or just starting their career? While discovering the answers to these questions isn’t a surefire investment strategy, they can give you a feel for whether this person will be around for a while creating works that will appreciate in value or if they are just trying to make a quick buck, as well as to whether or not what you are buying is a deal.
PIONEER A STYLE
Discovering an art style that has never been done before can be a great way to turn art into an investment. In many cases, whether the art is actually good or not, if it is the first time it has ever been done, it can really appreciate in value. This doesn’t mean that you necessarily have to like what you are buying, and you will need to make sure that what you are buying is actually a first and not just new to you. If you can do this, you stand to make some serious cash by getting in on the ground level of a budding artist doing something new or unique.
Before you go out and start buying up works of art, determine what your strategy is going to be. Just as in the stock market, buying a home, or any other investment, you should have a plan, a timeframe, and a spending strategy when you consider buying art. Are you just into art purely from an investment prospective? Do you want to enjoy your art as well? Is this a long-term investment or will you want to sell it quickly? Having a strategy before you ever buy a piece of art can save you time, money, and keep you focused on your investment goals.
This article is for informational purposes only. The author is not an art dealer or professional. Any action taken by the reader due to the information provided in this article is at the reader’s discretion.