When looking for an investment, you want to make sure that you are putting your money into something that will grow your asset. Of course, there are many wonderful investments out there such as stocks, bonds, and real state. For an added bit of diversity in your portfolio and a little more fun, take a look at these five great ways to invest in artwork.
Buying art as an investment
Buying and selling art as a means of investment has been going on for many years. If you’re looking to diversify your investments, or if you just love art, buying or selling art can be a good option. You’ll want to research artists that you like and see how their work is valued on the market; it may differ depending on the size and subject matter of what they create. You can also invest in types of artwork that are more popular than others by buying them when they first come out, making you able to sell them at higher prices later in time.
Every art lover dreams of buying the next Gauguin or Picasso, but the reality is that most of us are limited to investing in alternative forms of art. Buy a great piece and hope for the best – then it will be worth a lot one day. But how does one slowly make money off these lesser known, contemporary pieces? Several factors come into play, primarily the artist’s popularity and where they’re from.
Valuing and pricing art
What if you wanted to get your hands on some art for your house? What’s the best way to make it cost less? It all comes down to how you value and price it. Sometimes people are looking for something rare and other times they would just like a piece of art. The right person recognizes that there’s no way to know the worth of an artwork before you’ve had time to examine what it can do, where it has been exhibited, who owns it, and more.
Where to find fine art to buy
You are looking at art, so of course you want to buy some. The question is, where? Lucky for you, there are a lot of good places to find fine art and that it doesn’t need to cost a fortune. Some of these places include estate sales, antique malls, auctions, and online stores. Malls often have kiosks and booths with rotating art for sale that even changes each day.
Collecting specific types of art
Art can be a great place to invest money, but it comes down to figuring out which types of art you want to buy. Figuring this out may take some time and research. For example, one might want to focus on collecting American pieces from artists that are still alive. There are also different ways to collect and investing in art. One may want to approach the opportunity from a high-risk perspective and put some money in classic modern pieces, or purchase artwork from contemporary artists before they become famous.
Volunteering with museum curators to buy pieces anonymously
Purchasing art as an investment is not a new concept. Art has been used not just to acquire beautiful pieces but to invest in them and make money off of the opportunity. This is a strategy that a lot of people have found success with but it isn’t something that should be taken lightly. It’s vital to know what you’re doing, when it comes to art investing, before risking your hard-earned money.
Pledging Art Shares over on Patreon
Patreon is a membership platform that provides creative people with a way to get paid by their fans simply for creating content. There are no advertisements, and you can set your own price. Patrons pledge however much they want per month, but it ranges from $1 to $10,000 typically. Artists (or “creators”) typically offer things like exclusive content and one-on-one time for their supporters as rewards for pledging higher amounts. This allows people of any economic background the opportunity to support creators who would otherwise not have this sort of access to monetary support from a system other than capitalism.
Recommendations on art worth buying
Art is an attractive, long-term investment vehicle. The most common type of investment in art is via the purchase of paintings or drawings. You can buy originals from an artist who wants to sell their latest work that can be worth hundreds of thousands or even millions of dollars – some extremely talented artists are finally being recognized by the art world and their client base is increasingly rising as a result – so it might make sense to examine new pieces that are being introduced less frequently. With more emerging artists coming on the scene, there’s also a good chance that someone will discover your taste actually has quite a lot in common with theirs.
Creativity is really important when investing in art so adopting an entrepreneurial spirit that values imagination and diversity of expression is key. Creative individuals are known to have better problem-solving skills and the financial intelligence needed for investing in the market. These traits can help investors both success quickly and make a profit over time.
Investment Settings
Art investment can be a lucrative business and could make anyone a good return on their investment—as long as the pieces are sold in the right market. There are four settings for art investing: financial, collector, and hedger. The financial investor makes an art purchase in order to gain a return on their investment. Collector investors buy and preserve art because they cherish owning valuable works of art. Hedgers invest in art with the intention of using it as collateral to avoid risk or maintain liquidity.
Setting up a certified retirement account is the first step towards investing in art (or any other investment). The next step would be to make quarterly deposits so that your investments will grow slowly and securely. You don’t need to invest in huge chunks of cash – there are many other ways to invest, such as buying shares of paintings and then waiting for the value to increase. To find out more about these methods, you can check out How to invest in Art.
Start small with a few investments
For a while, the best model for investors was to put large sums of money into art. This continues to be true but with prices continually rising, it’s better to start small and make individual investments in different pieces rather than putting a large sum into one work of art. Focus on buying work by emerging artists or those who are unfamiliar with the market before an investment opportunity for the really great artists becomes available and the prices rise sky-high. When an investment organization needs to justify their starting bid, they will often use Art Market Research.
