Investing in art can be an excellent idea if you are interested in painting. On the other hand, it can come with a lot of risk if you are not familiar with it. You need to do in-depth research then. The art market has become one of the hottest investment crazes in recent years. Collectors of paintings and art often buy items with the intention of enhancing their portfolio.
As with stocks and bonds, the value of artwork can rise. If you buy the work of an emerging artist who later becomes successful, you are making a good investment. Remember that profits from art will not come overnight. You need to be patient and think long-term. Many investors include paintings in their estate plans as assets that they will later pass on to their descendants.
There are many types of art to look at. Newcomers tend to automatically think of paintings. However, it is worth remembering that art includes painting, drawing, photography, digital, mixed media, printmaking, sculpture, and even film
In general, an artist with an interesting history tends to generate more interest among buyers. Check the painter’s age, education, previous exhibitions and awards. Most biographical information can be found in the gallery where the work is displayed. Also try to find more news about him on the Internet.
Keep in mind that art is not a liquid asset. This means that you will have a lot of trouble turning it into cash right away. Liquid assets, such as stocks, bonds, and savings accounts, make it easier to turn money. If you opt for illiquid assets – artwork and real estate – you’ll need to set aside more time to sell. Those who are impatient should choose a different solution.
Focus on the area of art or style of painting that interests you most. Deepen your knowledge of the category instead of randomly selecting the most appealing pieces. The more you focus on a particular theme (landscapes, still life, abstraction, mythology, etc.), the better your chances of making the right decision.
Check out international trends. Most of the information is available online. As soon as the demand for a particular genre of art increases, put your investment up for sale.
Remember not to rush into investing large amounts. Start with something small. If art collecting appeals to you, you can continue your adventure. Give yourself time to learn the market. This will reduce the risk of wrong investments.
Just because your friends collect works by Picasso or Miro, does not mean that you have to collect the same. Don’t blindly follow the critics. Time is the only evaluation of a work of art. Just because experts support an artist now doesn’t mean it will be the same in 10, 20 or 30 years. So listen to your intuition
Look for artists and eras that are pleasing to the eye but not currently popular. Some experts believe that ancient European painting has fallen into oblivion (until the Baroque era). However, that doesn’t at all mean that at some point it won’t be appreciated again. Also, don’t be intimidated into believing that famous galleries only collect works by prominent artists. On the contrary, some galleries specialize in paintings by emerging painters. Be sure to check their offer!
When buying, make a fair offer and wait. If the painting is available at a given price, you will get it. If it has more value than you think, it’s better to give it up. There’s no point in overpaying. You can find something equally interesting at the same price. If you are selling a work of art, also be firm. You can be open to negotiation, but try not to go much below your price. Otherwise you will lose credibility. Remember to always use common sense.
