This is another installment of the Earn More and Save “Unconventional Investment Series.” Today, we’ll be wrapping things up with an overview of investing in art. Many people think they can invest in art wisely and turn a profit, but the reality is much different from the fantasy.
A lot goes into the learning process to prepare for becoming an art collector. If you’re having serious thoughts about giving it a whirl, do yourself a favor and study up before you buy that first painting.
Choose the Right Kind of Art
The first – and most fatal – mistake you can make when investing in art is limiting yourself to paintings. It’s a common misstep – newbie investors forget (or are blissfully unaware) that there’s a wide range of art out there for the taking.
For example, art could take the form of sculptures, photographs, light installations, computer-generated art, glass blowing, or pottery. There are also ancient artifacts to consider. This list is just the tip of the iceberg – make sure to find out about all the different types of collectible art out there before you settle on a type. Some are more expensive than others, so stick to art you can afford at first – sculptures and ancient artifacts may be out of question for your budget,.
Learn What to Buy
It may be a wise idea to educate yourself about the kind of art you choose to collect before you decide to take the plunge and buy a few pieces. Try signing up for some art courses at your local community college that cover the period and genre of art you intend to buy. You’ll learn enough to make informed decisions while you’re familiarizing yourself with the industry.
Another shrewd move for new collectors would be to check out online resources, guides, and directories that offer information about the current art market. Fore example, hit up reputable industry websites like ArtNet.com. ArtNet provides public art valuation databases, price information, tips for buying and selling, and industry news about exhibits, fairs, and auctions taking place all over the world.
Cautions and Considerations
When you get into art collecting, there are a few things you should be wary of right from the start. For instance, keep in mind that art is an investment that’s not regulated by the stock markets, so prices can fluctuate wildly. You can’t immediately sell your art when you need liquidity, either – it’s a matter of finding a motivated buyer who is willing to pay your asking price.
Also, make sure you take out proper insurance coverage for your pieces. Art is very delicate, and things like house fires, storms, or theft can destroy your entire investment. In addition, be sure to properly store and care for your pieces. Make sure to check the temperature where you’re storing or displaying your collection and research proper ways to care for your pieces to keep their value intact.
Art can be a very lucrative portion of your investment portfolio. The more you learn about the industry and keep an eye on the latest economic news update before you get started, the better your chances of scoring pieces that will appreciate greatly over time.
Also read: Real Estate Investing For Beginners.