Getting Started Investing in Art

Are you considering other options in investing? Whether you want to expand your investment portfolio or venture into another popular alternative investment opportunity, it is worth considering getting started investing in art.

Is Investing in Art a Good Idea?

If you are looking for alternative investment opportunities, art is definitely something to consider, but it is not for everyone. Typically, investing in art takes a sizeable amount of money upfront. You won’t likely buy a piece of art today that’s worth much of anything (now or in the future) that doesn’t cost at least five figures. 

Therefore, investing in art is only a good idea if you have that kind of money to put into an investment. You should also be aware of the fact that every piece of art does not appreciate in value greatly. Some won’t appreciate at all. Every art investor should be a fan of the artwork they are purchasing, just in case they wind up stuck with it. 

However, if you make a smart investment, your artwork could earn you quite a bit of money. This is especially the case if you have a good chunk of money to put into it. 

Why Art Investments Are on the Rise

Pieces of art are highly sought-after investments and a lot of investors are already drawn into this market. This is because of the returns that investors can gain once they identify which painting will have a higher chance to increase in value over some time. Additionally, an artwork typically maintains or gains value – even while traditional stocks lose value. 

Masterworks, an alternative investment platform that buys works of renowned artists, has opened doors for individuals interested in investing in art without having to hire a professional for advice. However, before you immerse yourself in the art world, it’s best to keep in mind these essentials. 

Getting Started Investing in Art in Three Steps

  1. Learn the trade. As with any other types of investments, you should research and know the market trends as well as other key factors. Knowledge is power when it comes to diversifying your investments. Be familiar with the market as much as possible. 
  2. Be part of the conversation. To improve your chances of becoming a successful art investor, it can help if you build connections and form relationships with people who are already involved in art. Visit art galleries, museums, and exhibitions. Talk to curators, the artist themselves, professional art consultants, and even other investors. Immerse yourself so that you can make informed and educated decisions in diversifying your art investment.
  3. Be careful with your finances. If you are just getting started investing in art, it isn’t uncommon for people to just go with their gut feeling. However, that isn’t always the best plan of action. Not every piece of art gains in value, and this is an illiquid medium. Always be careful when investing in anything.

These tips are the most essential and basic when people are eyeing out art as an alternative investment. Investing in blue-chip art with only a small amount of upfront cash is now made possible with Masterworks. This type of asset class is available to anyone interested in investing in art online.

Effective Strategies for Investing in Art

It is always a good idea to hedge your funds. Spread your capital around by investing in various artists or paintings based on the information you gathered. Be as prepared as you can by feeling out the market. Don’t hesitate to talk to other, more seasoned investors.

If you are still wondering if you can profit from investing in art, consider that artwork prices have significantly increased over the years. The S&P declined in 2018 by 5.1 percent while the art market came back with a 10.6 percent return.

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