How to invest in Art ?
You have probably heard of stock, market or currencies investing; in the wake of digital art, more and more buyers and collectors are now looking into the Art market as an alternative investment opportunity to traditional investment assets. Sounds interesting? But how do you get in on the first ground while you know very little or don’t even know the first thing about art?
To save you some time, we have come up with a few things that you need to consider before dipping your toes in art investing.
1.The key word here is investment, which means you purchase something with a hope of re-selling it for a more profitable price; so it is important to underline precisely what makes some artworks highly sought-after by investors. Art is traded totally differently from stocks, real estate or precious metals; each work of art is unique and cannot be replaced or directly compared to another regarding its value. Investment evaluation and trend forecasts for the art market mostly refer to the auction sales of the high-end market. With this in mind, we can safely assume that most art collectors not only invest in extravagant, high profile works but they also purchase art from the mid and emerging art market. Whether you want to start your own art collection, or just purchase an original artwork for your home, the best way to find the next perfect piece is to stay in touch with the art world.
2. It’s crucial that you have a set budget for your art investment endevors, so here are a handful of tips that you should take into consideration:
a) Know your budget limit
This is more or less common sense, but as a genreal rule of thumb: you should never invest more than you can afford. With that being said, don’t risk taking a loan to invest in works of art from distinguished artists.
b) Know your taste
This is perhaps the most important aspect. If you are collecting emerging art, you should first and foremost love the art you buy. To refine your own taste, consume as much art as possible by visiting galleries, exhibitions and art fairs to get insight into the art world. Remember, investing in art you love is the least risky form of starting your art collection.
c) Understand the market
To truly understand the market requires years of observation and study, but it’s not impossinle: Read auction catalogues, research artist profiles, and collect art books to better understand the ins and outs of collecting emerging art before you start .
d) Be careful with prints
With your limited budget in mind, it would be advisable to go for a unique print or prints with a low edition number by up-and-coming artists or prints by high-profile artists with high edition number.
e) Buy art from established artists
Most renowned art schools have very rigorous entry criteria and admitted artists are often selected by well-informed professionals who teach at the respective school. Consequently, buying highly-polised artworks from industry professional is the go-to to start your collection off, even with a smaller purse. With the rise of art investment on the horizon, another form of art is also emerging: Crypto art. Crypto art uses blockchain technology to simplify the art exchange process and solves many glaring problems exist in the art investing space. To read more about it, check out this article to learn more about what crypto art is and what issues it tackles: the article
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