Investing In Art: 10 Tips
Looking to make an investment in an art can be intimidating, but these "Investing In Art: 10 Tips" will help make the process an easier one. With returns on your retirement portfolio at record lows, you may be thinking of investing in art. Before you get out your checkbook for the first person you know with a paintbrush, consider these 10 tips for investing in art.
- Learn about art first. You may not have a degree in art, but the more you learn increases the chance you will make a wise investment. Visit local galleries and research art online. Learn about different mediums that artists use, including oil, watercolors or photography. Do not limit yourself to what can be hung on the wall. Consider pottery, sculpture, wood carvings and other medium also.
- Do you want fine art or an antique? If fine art intimidates you, antiques may be more appealing. Skills required by the fine artist are also required by craftsmen of antiques. For antiques and fine art, supply and demand, condition and rarity dictate overall value.
- How much should you invest? You’ve heard the phrase, “Do not put all of your eggs in one basket.” Limit your art investments to no more than 15 percent of your total portfolio. Investing in art is risky business and keeping a diversified portfolio lowers your risks.
- Do you like it? Just because you like it doesn’t make it good, but it certainly helps. If you find a piece of art attractive, odds are good so will someone else when it is time to sell.
- Do you need your money back soon? You are gambling if you need a fast return. Investing in art should be considered a long-term investment. Never buy art if you will need the money back in the short-term.
- Is it legit? Art fraud is alive and well. Buying a piece of art online poses more risk than buying a piece of art through a local reputable gallery. Artwork sold online can have forged signatures and fake certificates of authenticity. Know who you are dealing with and if the opportunity arises, buy directly from the artist.
- Is it worth it? Buy artwork not only as an investment ,but also for pleasure. Because of the volatility of the investment, you may be enjoying the piece for many years. In the end, the worth of the piece may boil down to how much you have enjoyed it. As an investment, it may lose value instead of gaining it.
- Where to look for art. Reading your local newspaper’s art section is a good place to start. Up-and-coming artists may be featured there and showing at local galleries. This gives you the opportunity to examine the work up close and occasionally meet the artist before investing in art. Other options include visiting local galleries or schools for exhibits.
- Take care of your artwork. Different mediums, such as oil, charcoal or watercolor, require different environments and care. Research your art medium online and learn how to maintain your piece of art. If you do not keep it in good condition, it will lose value.
- Selling your artwork should be done with as careful consideration as when you made the initial purchase. Have your work appraised by an objective professional appraiser. Selling directly to the appraiser could result in you getting a false appraisal or being underbid. Set a minimum amount you are willing to accept and calculate your return should you have to pay a commission. Take your work to an auction house known for selling artwork or sell it yourself to a collector and avoid the commission.