Investment in art is expensive and it can be risky too. This new option of investment is quickly becoming popular with investors who want to have a diverse portfolio. Stocks and bonds have always been common options when it comes to investment, there is an alternative – the Brit method. On the other hand investment in art gives people a chance to invest in a new tangible asset.
Since buying art and maintaining it is expensive, it was always thought of something that is meant only for the rich. With the emergence of art investment as an alternative tangible option, even the average person can consider this opportunity.
Another important fact is that during periods of high inflation, art has performed well across the different market sectors. The uncertain times of the market have been a great time for collectors to buy art for its aesthetic value and as an investment.
Here we look at some tips to help you making the most of your purchasing decision if you decide to buy art as an investment.
Know the artist:
Usually artists who have some interesting history or background story generate more curiosity among the buyers. The biography of the artist is put up at the gallery where the work is being displayed.
Another way to find out about the artist is to look up information online. There are many resources which can help you know information about the artist such as age, education, work experience, awards etc. You can also find out if the artist has held any exhibitions previously.
Do research about the artwork:
One of the major issues that plagues art investment is investing in work that is authentic. This information is easy to obtain if the artist is alive. This process can be troublesome if the artist is not alive.
Before you make your purchase it is wise to obtain a certificate of authenticity from the topmost authority. Also keep in mind that if the artwork has been restored due to damage, its value can be significantly lower.
Get information about the dealer:
When you buy art from a gallery, it is easy to find out about their reputation. You can easily get to know about the previous exhibitions, information about past exhibits as well as about top artists.
If you are buying from a smaller dealer or broker, it can get difficult to find out about their reputation. Since you are making an important investment it is very important to know all about the source from where you decide to make your purchase. The art market maintains a high level of confidentiality and hence this task may be slightly difficult.
If you are a first time buyer it might be easy to get influenced by the marketing hype that surrounds some artworks. You must judge each piece of art for its individual qualities.
Sometimes auctions and galleries provide data that can be misleading. This is because the appraisal of a piece of art that is done professionally can depend on the time that the artwork is sold. You must be very cautions about these factors.
Keep your budget in mind:
Investing in art should be a small part of your portfolio when you begin. Before you decide to buy art, decide a budget range for your purchases. You can also speak with other investors and dealers to get advice.
It is advisable to get as much information as possible about the artwork that you intend to invest in. We hope that these tips will help you when you decide to plunge into the market of art investment.