Art has long been considered an attractive investment option, often providing a solid return on investment if selected wisely. However, there are a few things that prospective investors should consider before jumping into the art market.
First and foremost, it’s important to consider the provenance and authenticity of any artwork before making a purchase. Due diligence is essential when investing in expensive pieces of art. Buyers should do their research on the piece’s artist, its past sales, and any previous owners. Similarly, investors should seek out established dealers and auction houses, who can provide a guarantee on authenticity and assist with any necessary paperwork.
When looking to build an investment portfolio, it’s generally wise to focus on established artists rather than emerging ones. While emerging artists may have the potential to provide a greater return on investment, established artists’ proven track records can often make them a safer bet. Famous artists such as Pablo Picasso, Claude Monet, and Vincent van Gogh, for example, have a well-established reputation in the art world and are often a popular choice for investors.
Another consideration when investing in art is the medium in which the artwork is created. Works on paper, such as prints, tend to be more affordable than paintings, sculptures, or other mediums. However, this doesn’t mean that investing in prints isn’t a wise decision. Prints by artists such as Salvador Dali and Marc Chagall, for instance, can still carry a significant value even though they’re not in the original medium.
It’s worth mentioning that investing in art requires a degree of patience. Unlike stocks or cryptocurrencies, the value of art doesn’t fluctuate with the same speed or frequency. Investors may have to wait several years before seeing a significant return on their investment. However, when the right artwork is selected and held onto over time, the payoff can be substantial.
Lastly, it’s important to consider any personal preferences when investing in art. While investing in ‘trendy’ artists or styles may seem like a smart idea, one should buy artwork that they enjoy and appreciate. After all, if the artwork doesn’t increase in value as expected, at least there will still be enjoyment from owning it.
In summary, investing in art can be a smart financial decision if done correctly. Research, patience and a focus on established artists can lead to significant returns on investment over a longer period of time. Furthermore, it’s important to focus on buying what you like, to ensure the investment is appreciated even if the financial return doesn’t materialize as expected.