Invest in Art, You Will Be Very Happy With the Returns
Most financial experts agree that the three best places to invest your money are: (1) in your home; (2) gold; and (3) art. The reason these are good investments is that over the long-term, the risk of losing your money is slim and, even better, your investment will grow. Here we will discuss the strategies of investing in art.
Be Careful and Do Your Research
Art is like that house you might buy. If you buy in the wrong neighborhood, you could lose money. The art market is capricious and what seems like a great investment today could prove to be a lemon tomorrow. Educate yourself first and foremost in the subject of art and do lots of research on artists, art mediums and techniques, galleries, and sales before you begin to build your art collection.
Originals vs. Prints
Not everyone has the budget for an original. If you do, then the original will increase in value over time. If your budget is smaller, you usually can find a print, called giclee, which looks just like the original. The original is rare, a one-of-a-kind, whereas the giclee is one of many. Some artists make limited edition prints, in which case the print is more valuable. A limited edition print with the artist’s signature is better, if your budget is limited. Sometimes the artist will go over the print by hand to add color, and this makes the print even more valuable.
Check Out the Art Auctions
The best way to get a sense of a particular artist’s or art style’s value in the marketplace is to visit the auction houses. Or cruise the internet. Visit eBay or artfact.com to see what the art you are considering is fetching on the market before you agree to the asking price.
Selling Your Art
Typically collectors do not sell their art. Experts estimate that as little as 0.5% of art is resold. This fact causes the prices you see at art auctions to be a bit skewered from reality. If you are ready to part with your painting, the best outlet is an art auction house. Commissions tend to run between 3% and 50%. Online internet sites charge less commission. Art is a long-term investment, though, and as long as the economy is performing well, the value of your piece will increase. On the other hand, during a recession, the value of your art can drop significantly. Therefore, as with other investments, timing is key. Pay attention to the market and unless you are really pressed, wait to sell.
Move Past Your Heart
Without a doubt, building an art collection is an emotional process. You are not going to have pieces hanging on your wall that you hate. There is a strong element of love involved. However, if your goal is to be an art investor, then it is important to move past your heart to the intellect. Look for quality. Visit art galleries, museums, and shows to educate yourself on artists, their popularity, success, commissions, and sale prices. When you find that piece you love, first get an appraisal. If you do these important steps, you will be well on your way to becoming a successful and happy art collector.