Tech
4 Art Investment Tips for New Collectors
Art sales reached $65.1 billion in 2021, outpacing 2019’s sales by $70,000,000. It just shows how resilient the art market is, even in the wake of the pandemic.
An art investment is a way to complement your other investments and shield you from a downturn in the stock market.
If you’re just starting out as an art investor, it can seem incredibly intimidating. Stay tuned, because you’re about to learn how to make the most of your art investments.
Read on to learn the top tips art collectors need to know before investing in art.
1. Do Your Homework
You should know two things before you make your first art investment. The first is your style. You should know what kind of taste you have in art.
Start by visiting museums and looking at magazines. Notice what you’re drawn to and why. Learn who the artists are in that particular style.
You should also have a budget. You’ll be able to know how much you can afford to spend on art.
2. Art Investing Takes Time
Art investing isn’t a get-rich-quick scheme. It doesn’t hold the promise of guaranteed riches like investing in the stock market or playing the lottery.
Investing in art takes a lot of time to make work. It’s like a fine wine that gets better over time.
You should be ready to hold on to the art piece for at least 10 years in order for it to gain value.
3. Explore New Art Investment Avenues
One of the drawbacks of investing in art is that you need a lot of money to get started. A good art investment can cost hundreds of thousands of dollars.
Most people don’t have that kind of money available, so they don’t try to find investment opportunities in the art market.
Thanks to technology, there are more ways than ever to invest in art. You can invest in NFTs, which are art pieces that are digital assets.
One up-and-coming investment opportunity is fractional ownership. Similar to crowdfunding, fractional ownership combines the resources of many people, which lowers the initial costs to get started.
This fractional art guide explains how it all works and how to get started.
4. Remember the Additional Costs
Beginner art investors don’t realize the added costs of investing in art. Yes, there’s the cost of the work of art.
That piece has to get transported to your home, which you have to pay for. There are commission fees when you purchase the art, along with applicable sales and duty taxes.
Once you own that work of art, it’s your responsibility. If something happens to it, you lose your investment money.
That means you’ll have to insure the work of art. You’ll have to pay for the appraisal and authentication and the insurance.
Keep these costs in mind as you calculate the return on investment.
Ready to Make Your First Art Investment?
As a new art investor, you want to make sure that your art investment pays off. Keep these tips in mind and look for creative ways to invest in art.
You’ll find more opportunities available to you than ever before.
For more exciting tips, check out the other articles on the blog today.
Kenneth is a proud native of sydney, born and raised there. However, he pursued his education abroad and studied in Australia. Kenneth has worked as a journalist for almost a decade, making valuable contributions to prominent publications such as Yahoo News and The Verge. Currently, he serves as a journalist for The Hear Up, where he focuses on covering climate and science news. You can reach Kenneth at [email protected].
