The value of art can be calculated in different ways – for its immense aesthetic and cultural worth, and also for its value as a wise investment. It offers unique benefits compared to traditional asset classes, but investing in art requires careful consideration and expertise. In a recent CNN.com article, I discussed the potential of art as an investment with Deborah Nason.
Deborah’s article was wide-ranging and insightful, and I enjoyed our conversation. Building on what I shared with her, here are some additional tips if you are interested in investing in art:
Do your homework
Research is crucial. Work to understand the artist’s market history and use resources like Artnet to track trends. Thorough research can provide the confidence needed for making informed decisions.
Diversify your collection
As with stocks or bonds, diversifying your art portfolio can help spread risk and increase potential returns. Consider acquiring works from emerging, mid-career, and blue-chip artists to balance risk and reward.
Follow your passion
Invest in pieces that you love. Art is a long-term investment, and the joy it brings should be a significant factor in your decision-making process.
Only work with trusted galleries
Working with reputable galleries can provide invaluable information and exclusive access to opportunities. These galleries know which artists are most sought after by private collectors and museums, influencing the markets for those artists.
Consider all costs
It’s important to factor in the total cost of ownership, including insurance, storage, and conservation. Proper management and care are essential to maintaining and potentially increasing the value of your collection.
Work with an art advisor
I can’t leave this one out, because I know the time, effort, uncertainty, and money I’ve saved my clients over the years. A qualified art advisor incorporates all of the tasks and responsibilities listed above and can become a trusted friend in your adventure.
For more personalized tips and expert advice, please contact me. Together, we can make art collecting an enjoyable and rewarding journey.
7/16/24