Art industries are flourishing more than ever. The fundamental concept of art is to add substance and brighten up a space. However, the value of art goes beyond the aesthetic appeal in modern times.
Art pieces have become one of the hottest investment crazes in the modern world. Several art enthusiasts and sculpture collectors are eyeing quality art pieces to add to their investment portfolio. But the question remains is art a good investment?
Let’s find out!
What” s Art Investment And How Does It Work?
Similar to stocks, real estate properties, gold, and bonds, art can appreciate in value. If a budding and upcoming artist establishes a successful career, the monetary valuation of their work will drastically increase.
Art can be anything from paintings and digital art to sculptures and mixed media creations. With an online art exhibition platform, the success rate of budding artists has improved exponentially. Upcoming artists and newcomers can connect with a global audience to create an impactful brand identity.
Art is a Long-Term Investment Scheme
Just like your real estate properties, you can’t expect your art investments to shower profits overnight. The value appreciation takes time. Art investment experts recommend art investment for investors who’re willing to invest for a period of 10 years or more. Therefore if you’re planning for art investment, think long term.
Art Investment Is Not Related To Stock Market Fluctuations
One major benefit of acquiring art as an asset is that its value doesn’t fluctuate with the stock market. Even if your stocks are performing poorly, your art investment may be appreciating excellently.
Thus, art investment is a great option for savvy investors who wants to diversify a portfolio and minimize risk. You can find artists who sell sculptures, paintings, digital art prints, and mixed media through digital exhibitions. And ideally (not definitely), artworks continue increasing in value over time.
Just like other investments, artwork investment also involves certain risks.
How To Invest In Art?
Prepare Your Budget
Start your art investment journey by determining how much money you plan to spend. Since artwork also involves certain risks, It should always be a comfortable amount you can afford to lose in case of unfortunate circumstances when the artwork depreciates. Additionally, you’ll need to consider the storage and maintenance costs (mostly in cases of painting and sculptures).
Choose A Niche
The art industry is expansive, and you’ll get perplexed if you try to focus on every category of art. Research various art categories and choose the one with the most promising returns that fit your budget and is easy to store. From paintings to street art, you can find several art forms on a reputed online art exhibition platform.
Also Read: Why Right Now Is The Best Time To Invest In Art?
Understand The Artworld
As mentioned previously, the art world is expansive, and sometimes, it works mysteriously. Therefore try to understand and learn about the art realm as much as you can.
Visit local galleries to scan through their collections. Browse through online art platforms. Attend digital exhibitions.
And don’t forget to to art exhibitions and fairs. See what each of these art cautions has to offer. Connect with curators, who will usually be interested and eager to explain any of your queries.
Various art platforms sell sculptures digitally and through art exhibitions as well.
Things To Consider Before Investing In Art
Don’t Invest Everything In Art.
For most seasoned investors, art constitutes only a fraction of a well-strategized investment portfolio. Therefore don’t pour your money into a single investment, You may profit, but there are also chances that you might not receive a huge payout from art alone.
Don’t rely on art investment to start a source of passive income unless you’re regularly flipping art pieces at an online art exhibition platform. Additionally, you might require to pay taxes on any gains.
Avoid Getting Dragged Into The Hype
When any asset class (stocks, crypto market, real estate) performs well, more investors want to get their hands on those assets. The art industry is no exception.
The recent culture of art appreciation has sparked great excitement among art collectors. However, only certain selected artists have the potential to generate big returns.
Don’t fall prey to these potentially hazardous behavioral patterns, hoping to ride the wave of profit. Research about the artists you’re investing in.
Are their marketing activities well-optimized to establish a brand name? Do they sell sculptures, paintings, art prints, or any other art forms in renowned exhibitions? How well are they able to sell in the current market? What about their artist training//education?
There’re so many questions you can ask to get an insight before making any investment decision.
When Should You Invest In Art?
- You Should Find Art Interesting: Visiting galleries should be a fun activity for you. You don’t need to become a curator. Investing in even one or two pieces can be enough.
- Earnings through artwork investment is always a positive aspect, but you don’t depend on them.
- You’re willing to collect insightful details and do research before investing.
- You can afford the storage and maintenance.
What Types Of Art Investment Can You Do?
- Originals or exclusive artworks: Generally, it has a single copy and comes with a higher price tag. However, these art pieces offer the greatest potential for good returns.
- Prints or giclée: More affordable artworks. However, you’ll need to do more detailed research and choose pieces that are exclusive. Limited copies have the potential to increase in value than unlimited reprints floating in the market.
- Flipping art pieces: This isn’t a long-term investment. You can collaborate or buy art from the upcoming artist, do the marketing, create a profile on an online art exhibition platform and sell artwork regularly. You can charge a keep a certain profit margin while selling the art on the artist’s behalf.
Is Art Investment A Good Choice?
Art investments surely bring returns when done correctly. While investing in art, you need to remember that, like most investment schemes, art also involves certain risks. Research and understand the market before rushing into any decision.