Art investment portfolio: Art collector guide to owning one.
Art investment portfolio is a difficult arena to tread. For an average investment budget like ours, can we expect to be an art investor? Can art ever be within the investment portfolio of a middle class family?
The investors are fast becoming diverse in choice and demographics as the art fever catches all. The art investment avenues are till date considered as the hobby of the uber rich. An average middle class person can hardly imagine owning an art investment, let alone completely owning one .
Fart magazine brings you the intelligent reasons to invest in the artwork, without burning a hole in the pocket! Read on.
- The right artwork is a huge investment in itself. A carefully selected merchandise or one bought after consultation with an art critic, brings capital appreciation. So, if you are prepared to invest a few bucks at the right artwork, you won’t be disappointed. Likewise investment in a growing artist or niche can be equally bring best financial outcomes.
- Art investment and price of artwork is highly subjective. A lot depends on the notoriety of the artist as well as the money the person is ready to invest. Consider the example of street artist Banksy and his artwork. Due to his guerilla acts, he is now the most sought after artist in the world. Furthermore, the artwork is like Beauty, it lies in the eyes of beholder!
- Most importantly, the outcome calculations in the artwork are highly difficult. Art is collectable and if worst comes to pass, it can adorn your home and parties! A concrete investment capability cannot be guaranteed for an artwork. Factors like artist repute, market forces, exclusivity, etc. are a few of the factors that may impact art business.
- Market volatility is another important factor in investment portfolio. However, luckily, as an art investor, you won’t be subjected to the bullish and bearish impacts of the stock market. As it grows old, art garners reputation and high value.
- For the reason that art experts are few, lower knowledge of artwork exists. Consequently, only a few people are able to gain the advantage of their knowledge. If you are a shrewd investor or art enthusiast, look for expert to guide you on safe art investment.
Go long term:
Most noteworthy fact: you can never become quick rich in this arena. Art is easy to get and difficult to sell. Don’t believe that your artwork will sell like hot cakes overnight. Hence, selling artwork is a long term process with inputs from valuers, dealers and tax authorities. Selling an art project takes time and patience. Till then? Enjoy the visual charm of your investment.
Care for your artwork
The artwork has huge potential to appreciate however, it comes with huge need for care. The responsibility of maintaining, display and storing can be a challenging task. For this reason, the artwork should always be insured to avoid the detrimental effects of fire, flood and other natural calamities.
Therefore, depending on the value of your art collection, additional insurance as well as home insurance may be needed. Some insurers may ask to store the artwork while others may seek otherwise. This varies from one insurance company to another. For an average art piece, seek a home insurance policy that covers these artifacts.
For those who wish to gain the best out of their investment can relax for the artwork pays for itself in the long run. Similarly, the inflation eats ups value of assets but in case of art pieces, this is fairly negligible. Art pieces retain their value as well as tangibility.
Invest in budding artists
For a budding investor in art pieces, you can start small. This means investing in small amounts in artists with potential. This will help you two fold: networking as well as investment. You can start from local artisans, craftsmen, art fairs and galleries. If you are potent in catching talent then you can buy a future van Gogh today and reap benefits later!
If art seems out of your monthly budget, earmark a small amount each month and buy something special at year end! Remember, the idea is to start small. Alternatively, some galleries also accommodate requests for instalments. So gear up for digging gold! But before that, do your homework and research on the art pieces. The more you research, the more intelligent you will be in the art investment portfolio.
Why should you invest in art in the first place? Obviously if you love art. Art investment portfolio is huge and has varied outcomes. However, proceeding with caution can be extremely beneficial for your future endeavours.
Big question: Can art ever be the safe investment choice for middle and lower class families around the world? Or they would still need to suffice with mere vermeer than original?
Share your experiences of art investment portfolio in the comments section below!