How to turn art collecting into a sustainable investment strategy
There are people who go at great lengths to collect art. You are likely to recognize them at fairs, auctions, and the finest galleries. Art lovers, as they are called, search for works that have technical mastery, as well as creative imagination. Maybe collecting art is a cultural activity that you enjoy. Trying your hand at collecting art is not something that you hesitate to do.
In case you did not know, individuals have made millions by acquiring art solely for financial reasons. They have portfolios with investments with capital growth potential. Over the years, art collecting has proven to be profitable as opposed to, say, investment banking. You too can make money by investing in art. Fine art is a fine investment. You will want to implement this strategy as soon as possible. If making money is an art, it is time to see what can be done to make money from art.
Is art collecting really a valid investment strategy?
As far as collecting art is concerned, there are many things that motivate the collector. While some strongly support the arts, others strive to cultivate their collections, passing them onto the next generation. The painting that you set your eyes on a couple of weeks ago could be worth a lot of money. The question now is: Is investing in visual artifacts like paintings a good way to get rich? Should you really be investing in art? The answer is yes.
Art is a fine collectible and art collectibles increase in value as they reach a certain age or become rarer. The value of an artwork depends on several factors like provenance, medium, condition, subject matter, and size. Art developed for aesthetics and beauty has the same features as other investments. It is a tangible asset that appreciates during inflationary times – in other words, its price rises. There are real earnings for you, the owner. Buying fine art is private, meaning that you are not expected to report the financial transactions to the government.
An art collection can enrich you. You do not have to be financially wealthy to collect art. Efforts are made in the industry so as to lower barriers to entry and open the doors for new collectors, including young people. If you are collecting the classics, on the other hand, you will have to dig deep into your pockets. When it comes to collecting old master’s artwork, it is possible to find exquisite and exciting pieces. Dmitry Rybolovlev has accumulated a fabulous art collection, enjoying pure joy that comes with owning artworks. Do you not want to start your own collection?
How to earn from an investment in art
The decision has been made. From now on, you will purchase art as an investment. Investing in art is not at all complicated, but it does require a good understanding and a solid strategy. If you have available capital to invest, it is a good idea to buy paintings that will significantly increase in value. You cannot surround yourself with just any objects. It is important to be able to monetize the art collection. This is how you can make sure that you are making a good investment.
1. Understand the markets in which you are working
There are 2 markets: the primary market and the secondary market. The primary art market is concerned with the artifacts that of art galleries and exhibitions. Basically, it is made up of artifacts coming straight from the artists’ studio. The secondary market refers to the artwork that is purchased by collectors, businesses, foundations, dealers, etc. It is advisable to spend your money on one significant work. There is no point in buying several paintings, as they might not maintain their value. In galleries and similar establishments, you will come across commercial art. If a work catches your attention, find out as much as you can about the artist and search the Internet for the specific price. The more you know what you are going to acquire, the better you are able to determine the value of price.
2. Train your eye
When purchasing artwork, you have to know how to spot quality paintings. If you do not have piercing eyesight, you will not get your hands on valuable masterpieces. Make a habit out of visiting local galleries. There, you will find drawings, pastels, and oils. What can come well out of buying these pieces? Well, you will train your eye. The artwork should captivate the attention and focus on a subject that is largely neglected. If you want to be on the safe side, consider investment-grade art. The craftsman is a serious figure and you have guarantee that his work is not going to disappear any time soon. Buy the best that you can afford.
3. Selling your art investment
Art can be traded all over the world with no difficulty. When you wish to sell your collection or certain pieces of artwork, all you have to do is give it to the buyer and take the money. Well, almost. Sales should not be made without talking about things like resale royalty rights and putting them into writing. Blockchain can help you make a fast transaction. An increasing number of investors turn to blockchain because they can monitor provenance and eliminate transaction fees. Anyways, selling paintings is an opportunity that you need to capitalize on. Wealthy individuals are willing to spend important sums of money on art and collectibles.
To sum up, you can confidently invest in art. Paintings, for instance, can increase in value even when the market crashes. If you want to build long-term wealth, you will invest in art. With the money made, you will be able to fund your retirement. Never take into consideration the trends and trust your instinct. Always purchase an original painting over a print. Having a name artist does not make collecting more complicated. You will love the painting and you will be able to look at it for a very long time.