Why is it important to invest in art?
The art market has become one of the newest investment crazes recently. Painting and sculpture collectors frequently buy new pieces and add them to their investment collections. It can be tricky to know what to invest in, so you need to have done your research or know someone who is well attuned to the art world. Art is a long term investment, which comes with pros and cons. In this article we will discuss why it is important to invest in art.
Investing in Art
Like any market, whether we are talking about the art or traditional investing, all have their ups and downs. Every piece of artwork is unique, but the value of the artwork comes down to the artist’s reputation and the economy at the time. Yet, art is really a long term investment, as profits from the artwork won’t accrue overnight. Some pieces of art take up to 10 years before anyone sees any profits or are passed down to the original owners’ descendants. Investing in art is a lifetime commitment that never goes away.
When investing in art you should look at the rarity of the artwork. The rarer and more unique it is, the better. These will almost certainly be worth more than pieces of art that have been mass produced. Sometimes just the name of the artist that has created the artwork is enough to determine that it will be a good investment. However, having an eye for investing in art is really important. If you know what you are looking for then you will make better decisions.
Buying new art from new or old artists
People may invest in art as they enjoy the piece of art. However, other people invest in art for financial profits. Buying art from a well known artist means that the investment is going to be quite expensive as the artist has already made a good reputation for themselves.
However you can also invest in art from new artists. The downside of this strategy is that you have to have a good eye and then hope that the artists you chose will become more well known. There are no guarantees on how the art will do, it might do well or it might not, resulting in a loss of the initial investment.
Investing in art made by both dead and still working artists helps their careers and reputations massively. However, art from a deceased artist is often seen as a better investment than art from an artist that is still alive. This is due to the fact that the deceased artist can no longer produce any more work and the work you are seeing is more likely one of a kind. This isn’t always the case, but it is something worth noting.
Expanding Your Knowledge
To do well in art investments, you need to know what you are doing. You need to have done your research. You need to research the art you might want to invest in and research the artist themselves. Also, it’s important to like the artwork you invest in personally because art can have an incredibly long hold time. Ideally, every art collector wants to invest in art that is rare and unique but they still have to like what they are buying too. Doing this research will open your eyes to the art world and different types of art that you may not have known existed.
Love of Art
If you love art and want to learn more about the art world, then investing is a great way to see which direction the art world is trending towards. It shows you what is popular and who are the favored artists at the moment. Art is a great way for artists to express themselves and make a comment on the world at the time. Artists often create work about things that directly affect them. Their work can be inspired by huge events or movements that people might be aware of, or events and movements that they believe need to be held to a higher level of significance.
Art is very personal and so artists might create work while inspired by their own experiences. They can portray issues that a lot of people can easily relate to. Especially as mental health and climate change have become issues that more people know and care about in recent years, you can see more pieces of art reflecting these two huge and important issues.
Investing in art can also help give a voice to those who feel underrepresented and shine a light on important issues that require more attention. Most investors simply started out as collectors that loved art. As a result, having an interest in art or knowing someone who loves art is important as it will help you choose the best pieces for your collection.
Investing in art compared to investing in stocks
Once you have invested in your art, you may find that museums or galleries want to house the artwork as a part of certain exhibitions. Alternatively, you might find that nothing happens to the artwork and you may want to sell it on again. Finding the right time to resell the artwork is important. But most of the time, the artwork can either stay in storage or in your home if you like the look of it.
As mentioned above, art is a long term investment, so when investing in art you should be aware that you’ll have the art for a long time whether it goes good or bad. Although, if you invest in art to put up in your home, then investing in art is a great way just to show that you are very cultured. Having art in your home can impress your friends and family and demonstrate that you have an eye for art.
Investing in stocks can put more day-to-day pressure on you as an investor, as stocks and shares are changing in value all the time. Investing in stocks may give you more instant results, but when you invest in art you are also giving hope to the artist that created that art work. You don’t just invest in art, you also invest in the artist.
If you are an art lover then investing in art is a great way to expand your art knowledge. It also gives new artists a boost by demonstrating that their art is of quality and that someone has faith in their work. Art is very subjective, and normally it depends on the reputation of the artist themselves to determine if the artwork will do well. However if you are an art lover, then investing in art is a great way to research and discover more varieties of art. It also opens up your mind to different styles of art that you may not have encountered before.
Like investing in anything, investing in art isn’t without its risks. It isn’t a quick money maker. Compared to investing in stocks, investigating in art isn’t as scary because art is a long term investment. This means that you have to hope that it will do well, but really you can’t be sure for a long time how well it will do. At the end of the day, art is a great way to show that you have a good eye for detail. It also means that you can have unique and interesting pieces of art around your home to constantly enjoy.