If you are an art neophyte, the allure of purchasing a piece from a world-renowned artist can be intoxicating. However, before getting your feet wet, there are some dos and don’ts about buying art as an investment you should know.
The art world is filled with stories of individuals who have made a fortune by investing in art. On the flip side, there are many instances where people have lost a great deal of money by investing in pieces that turned out to be forgeries or of little value.
Similar to spending a ton of money on a property without having a home inspection and carrying out due diligence, buying art as an investment without educating yourself on the process can be a recipe for disaster.
To help get you started on this adventurous journey, we’ve compiled a list of dos and don’ts to consider when purchasing art as an investment. Let’s start with:
The Top Mistakes to Avoid When Buying Art as an Investment
1. Don’t Expect Overnight Returns
Buying art as an investment is a long-term proposition, and it can take years, sometimes decades, for your investment to appreciate. If you’re looking for a quick return on your investment, art is not the right place to put your money.
Unlike stocks and bonds, art is an illiquid asset, meaning it’s difficult to sell quickly. When you purchase a piece of art, you’re generally stuck with it for a while. Finding a buyer willing to pay your asking price can be challenging unless you buy from a blue-chip artist who regularly sells at auctions. Even in such cases, you are better off holding the piece for a more extended period to maximise your return.
2. Don’t Limit Yourself to Prints
Buying prints is an affordable way to start your art collection, but it’s not the best way to generate returns on your investment. Prints provide you with limited upside potential because there are so many copies in existence, and in the art world, rarity is key to value.
So, while it’s okay to purchase a print or two for your home, don’t expect to make a killing when you resell it. You want to start sharpening your senses to identify up-and-coming artists. Doing this will allow you to buy works of art at a relatively affordable price and sell them for a much higher sum down the line.
3. Don’t Neglect Art Insurance
You have insurance for your car and home, so why not insure your art collection? Whether you have a few pieces or an entire gallery, it’s essential to have your artwork covered in case of theft, fire, or damage.
The cost of insuring your art will depend on the value of the pieces and the level of coverage you require. It’s a good idea to get quotes from different insurers to find the best deal.
4. Don’t Confuse Original Paintings With Giclée Prints
Giclée prints are high-quality reproductions of original paintings, typically done on canvas. While giclée can be beautiful art pieces in their own right, they are not originals and are worth considerably less than the real thing.
If you’re looking to invest in an artist, make sure you’re buying an original painting and not a giclée print. You can usually tell the difference by looking at the texture of the canvas and the brushstrokes.
5. Don’t Do It Alone
It’s best to seek guidance from someone who knows the ropes. Working with a professional art advisor is a great way to get started. An art consultant can help you find pieces that fit your budget and investment goals.
An art consultant will also be able to provide invaluable insights into the world of art collecting and can introduce you to artists, gallerists, and auctioneers.
With this covered, let’s look at some things to do to make sure you’re successful when buying art as an investment.
5 Tips for Successfully Buying Art as an Investment
1. Do Your Research
It is vital that you take the time to learn about art and the art market before you start buying pieces. The art market is complex, and unlike other markets, there is no centralised exchange.
It would be best if you were comfortable with the risks involved before you start investing your hard-earned money. Be sure to read up on art history, artists, and the different types of artworks before you begin buying. Visit art galleries and museums, and attend art fairs and auctions. The more you learn, the better equipped you will be to make informed decisions.
2. Know Your Budget
When buying art, you need to be realistic about what you can afford. Art can be expensive, so you will need to select the pieces you wish to buy carefully. What’s more, like other investments, it’s wise only to invest money you can afford to lose.
That said, It’s a good idea to set a budget and stick to it. Don’t get caught up in the moment and overspend on an artwork that you may later regret.
3. Verify Provenance
Provenance is the history or chain of ownership of an artwork, and it is essential to consider when buying art for investment purposes. A painting with detailed and verifiable provenance is more likely to be authentic and have a higher value than one without.
When buying art, always ask for documentation such as receipts, invoices, certificates of authenticity, and bills of sale. These will help establish the piece’s provenance and can be used to verify its authenticity.
4. Consider the Condition of the Work
The condition of an artwork is another essential factor to consider when buying art for investment purposes. A work of art in good condition will be easier to sell and will usually fetch a higher price than one in poor condition.
When inspecting an artwork, look for signs such as cracks, holes, tears, or water damage. Also, check the back of the piece for any signs of repair.
5. Maintain Your Artworks Properly
Once you have purchased your artwork, it is essential to take care of it properly to ensure it retains its value. Be sure to follow the dealer’s or gallery’s advice on how to best care for the piece.
Avoid hanging your works of art in direct sunlight or a humid environment, as this can cause damage. Also, keep your artwork in a secure location, away from children and pets.
By following these tips, you will be well on your way to buying art successfully as an investment.
Florence Bell Art Gallery - Your One-Stop-Shop for Your Art Needs
If you are looking for a reliable art gallery to help you buy art as an investment, look no further than Florence Bell Art Gallery. We offer a comprehensive range of services for first-time buyers and seasoned collectors.
Our experienced team of art consultants will be more than happy to offer you advice and guidance on buying art for investment purposes. Get in touch with us for more information.
