The political and economic instability of the situation in the country and the world makes investors look for and develop new investment options.
This is how investments in art come into its field of vision. But is it possible to make money on art? Let’s try to figure this out today.
PROFITABLE INVESTMENTS IN ART
According to the estimates of experts over the past 25 years, the annual growth of art objects is 50–80%. Investors are most often interested in:
· Paintings ;
· Sculptures;
· Antiques (antique cutlery, books, furniture, household items, cars, icons)
The greatest profit with minimal risk is brought about by investments in paintings by famous artists. But this option is suitable only for wealthy investors. The most important thing in investing is the rate of return on investment, time, and degree of risk.
In the case of works created by young artists who are just entering the market, the time of investment is uncertain, but the risk we take is small.
We invest small amounts initially, and with the right knowledge and training, we can count on significant returns.
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BEGINNING INVESTOR STRATEGY
For a novice investor, the amount of $25,000 is likely to be unbearable. But this does not mean that investment in art is not available to him.
He just chooses a strategy that is somewhat different from the strategy of a wealthy investor. First of all, the investor starts:
· Study painting;
· Visit museums, exhibitions, and galleries;
· Communicate on thematic forums;
· To delve into the life and needs of artists;
· Track auctions;
· Study reviews of critics and experts;
· Look for emerging artists and sculptors.
This process is long and complicated. However, the investor is not afraid of difficulties. After all, he understands that, having learned to determine the artistic value of things, you can multiply your fortune many times over.
ART: ORIGINALS AND FAKES
An investor needs to understand that the process of studying art, like the art of investing, never stops. Therefore, at least at the initial stage, he turns to experts for help.
To reduce the level of initial investment, the investor prefers to work directly with the authors. As a rule, the price of art objects depends on the fame of the author and the availability of expert documentation.
But, even if the author provides documentary evidence of the authenticity of his work, the investor re-verifies the authenticity and value of the work from a trusted expert whose opinion he unconditionally trusts.
THE OTHER SIDE OF INVESTMENT
The return on investment in art is only one side of the coin and far from being the most important. For an investor, the given opportunity is much more important:
· Plunge into the world of beauty;
· Enrich your inner world;
· Know yourself in this world;
· Change yourself for the better;
· Change your attitude towards the world and the people around you.
The investor notices how his passion for art captures his entire consciousness and how the world around him becomes more beautiful. He notes with surprise that he is drawn to museums and theaters. He takes his family with him, spending more time with them.
And that’s great. Isn’t it worth investing in art for that? What other investments bring such moral satisfaction?
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THREE RULES FOR INVESTING IN CONTEMPORARY ART
Here are three rules for investing in young art that will be useful to both those who are looking for a way to invest money and enthusiasts who want one of their favorite works to be bought in an art gallery.
Contemporary art requires preparation and effective navigation through the corners of the art world. However, it is enough to apply the following rules to gain confidence in navigating the art market and speak to stakeholders convincingly and professionally.
Rule 1: Buy Art You Like
This is the first and most important rule of investing in art.
Suppose you are not a professional art collector. In that case, you should follow your own taste, based not only on knowing what is currently on sale but also on what is presented in recognized contemporary art museums, galleries, and art fairs.
Since the “investment potential” of young artists is unpredictable, the main motivation for buying their work should be a sense of personal connection with their work and an emotional level so that the purchased item is your good companion for every day.
It would be ideal to find a middle ground between what you like to look at and what is currently in trend. We must remember that trends and fashions pass, and if we develop a proper vision of what is valuable, we can be sure that we will not make a mistake in our choice.
Ask yourself what exactly you like about the work you have already chosen: Is it original, or does it have a fresh approach? Or maybe it is traditional but captivates with its colors or shape? It is always worth looking for exceptional and unique art, which determines its enduring value.
Participate in auctions, including charity
Participation in auctions is a great way to learn about the status of young art. A comparison of what and for how much it is being sold today and a few years ago gives a clear picture of the position of the artists.
However, it is worth learning about prices from auction catalogs and directly from artists or their galleries. Please be aware that the auction price is inflated due to additional fees that the buyer incurs in connection with participating in the auction and purchasing the work.
An interesting alternative is to participate in charity auctions, which are unpredictable, but often you can find real treasures.
Rule 7: Build relationships with artists and their representatives
Participating in meetings with artists and being in the company of museum friends are ways to achieve the goal of building strong relationships with artists and their representatives.
Carefully following the careers of selected artists, magazines, online magazines, and collective exhibitions will help you with this.
Conclusion
Investments in art allow novice investors not only to increase their initial capital but also to receive moral satisfaction. Definitely, you can and should make money on art.
Investing in art is considered both wasteful and a sign of high social status. But it is also equated with brilliance—spending money on other material needs.
In addition to material value, a picture, photograph, or sculpture of a young artist will not only decorate the interior of the house but will also become an intriguing reason to talk with friends. It is also a great idea for an original gift that can be the beginning of your large collection.
Check the expiration date. For everyday grocery products, expiration dates may be closer to the day you purchased them. But if you want to freeze or store in the pantry, it is better to buy freshly labeled products.
Take advantage of the discounts of the day. It is usually a good idea to look through the most recent catalog or discount publication because they often feature fundamental consumer goods. Examine the unit pricing that is always disclosed in the small print.
5. Apply automatic control
Get organized by paying for personal or home expenses in cash and automating sizable sums for essential services.
Use cash in an amount that works for you to pay for small expenses.
Organize payments using the Automated Payment with Current Account (PAC) or Automated Payment with Credit Card (PAT) services, or save the credit or debit card for bigger purchases or fixed bills.
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