Six Super Art Investment Tips – artmarketblog.com Six Super Art Investment Tips – artmarketblog.com
In recent times fine art has gained popularity as a hedge against the volatile fluctuations that have plagued the more mainstream financial markets
News-Antique.com - Jul 18,2011 - Six Super Art Investment Tips – artmarketblog.com
1. Know what to expect
In recent times fine art has gained popularity as a hedge against the volatile fluctuations that have plagued the more mainstream financial markets such as the stock market. The fact that fine art is a tangible object and can be traded for money in any currency also appeals to investors who have large amounts of money in intangible products and markets that use virtual or electronic market places. As well as the financial benefits associated with the purchase of art as an investment, there is also the enjoyment you will get from purchasing and owning a piece of fantastic fine art, which is why it is important to purchase something that you actually like.
If you are expecting to score large and fast profits from investing in fine art then fine art is not the investment for you. If, however, you are looking for a long term investment in a tangible object that can be enjoyable, educational AND potentially profitable if approached in the right way, fine art is definitely something you should consider investing in. Before you whip out the credit card there are some things you need to know about the art market and art investment. First of all, the nature of the art market means that art investment needs to be approached as a long term investment that will usually require a minimum holding period of seven to ten years – but be prepared to sell sooner if market conditions are favourable. Secondly, the cost of selling fine art tends to be quite high so one needs to factor in those costs when deciding whether to sell or not. Thirdly, it is extremely important to remember that fine art should be approached as a way of diversifying an investment portfolio and should form part of a balanced portfolio.
2. Buy the best you can afford
When it comes to deciding what to buy it is important to remember that when purchasing art as an investment you should always purchase the best that you can afford. This means that it is better to purchase a really excellent drawing or limited edition print than to purchase a mediocre painting. At the end of the day, a top quality original work on paper or limited edition print will always be more desirable than a mediocre painting. It is also extremely important to purchase something that you would actually be happy to live with should the value of the work of art you have purchased fail to increase in value or, in a worst case scenario, go down in value. If have purchased something you like and it does go down in value, at least you can still enjoy the work of art.
There is really no minimum amount of money that one needs to spend to invest in art, however, the more money you spend, the more options you will have, and the more likely the work/s you