How to invest in art – a beginner’s cheat sheet

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If you want to invest in something that will offer you access to great financial resources in the future, then you have two main options. You can either invest in real estate or you can invest in art. Both actions will offer you great earnings in the future, but art in comparison with real estate gets more valuable in time. Real estate has the tendency to face a drop in price if you do not maintain its state. And this means that you will have to spend money to make money. So, art is a better strategy to increase your income, because all you have to do is to wait your pieces get more valuable and sell them to collectors.

What is art?

Some would say that this is the type of question that requires an abstract answer. Well, the fact is that you have to understand what pieces are worth being named art, and which are considered just decorative pieces. When we say art, we refer to famous paintings, sculptures and even photos. Some people invest even in glass pieces, because they can purchase them at a low price, considering that the market is at its beginning. 

Is art the right investment for you?

No one can guarantee you that you will invest in a successful business. It all depends on the pieces of art you decide to purchase. When you buy art, you have to rely on your knowledge, and considering that you are a beginner you have to be prepared to face a few challenges. But you need to be patient, and you will notice that everything will be all right. It is also essential you to love art, because your first purchases will have to be objects you really like. You should not consider art a simple investment. It is important you to have an emotional connection with the pieces you buy. But you should not lose your faith, the art you are buying has chances to become a classic one day.

How to start your collection on a budget?

Because you are a beginner, you do not have a big sum of money to spend on art, so you will have to make a plan to invest on a budget. The best strategy you can use is to buy art created by emerging artists, because it has potential, and in a couple of years, its value with reach new limits. You should follow the example of Kantor Viatcheslav who supports his community by buying pieces of art created by artists who are in the first phase of their career.

You have to do a research to see what artists are considered talented ones and to choose the pieces you think that will increase in value in the following years.

When you have to decide from what artists to buy your pieces, it is important to know a few aspects about them.

  • You will have to check if they have followed the classes of a well-known school.
  • You will have to check if their works of art were exposed in an exhibition.
  • You will have to research if they have been nominated or if they have received any prize.
  • You will have to ask them what is the idea behind their art, and see if you share the same opinion.
  • You should get an image of the pieces of art they sold until now, and check the sums people paid for them.
  • You should look for a distinctive style.

Build your own art circle

If you want to have success with this investment then you will have to surround yourself with people who share the same passion as you do. Moshe Kantor recommends creating a circle of people who have experience and competence in this domain. You should start creating relationships with mid-career artists and invest in their prints. You not only that have to find prospective buyers for your works of art, but you also have to stay in touch with the changes of the market, and being part of a specialised circle, offers you this possibility.

Factors that determine if you make a good investment

When you buy a work of art, you have to make sure that it is a good investment and you will be able to sell it in the future, and for a better price. Therefore, you will have to check some factors:

  • If the work of art is part of a limited edition, it is important to not be copies of the artwork, and in case there are, to be only a limited number
  • Does the piece of art has any significance for the public?
  • Is the piece of art in a good condition?
  • Did the artists sign or date the piece or art? It is important to be able to associate it with its creator, if you want to get the right price for it.