The word “investing” seems to have invaded the whole of society today. Before, only a portion of the population ever thought to invest. Today, even those with small budgets look for ways to place some of their money, where it could potentially grow exponentially bigger. The art world is not for everyone. Even those who have the funds enabling them to buy, should learn more before investing. Here is a brief introduction to the world of fine art investment.
Is fine art a good investment?
Why don’t we start with the most difficult question to answer? After all, that is what everyone really wants to know. You will most probably be disappointed by the answer, as it really depends on what you are looking to get out of it. If you don’t have much money to invest, or you are looking for a quick turnover, fine art investment is not for you. If you are a new investor on the market, no matter how much liquidity you have, fine art should not be the first investment you make.
However, if you do appreciate art, and buying a painting won’t jeopardize your finances, then you should start looking into it. When you find the right piece of art for you; you will know it immediately. Then you must secure its transportation, because everything you invest in, in the world of fine arts, needs to be secured from the moment it comes into your possession. Before it even leaves the original owner, you’ll need to insure it. Only once that is covered, can you have it shipped through the care of a specialized company.
A Question of Interest First and Foremost
Fine art investment, is not like playing the stock exchange. And although it holds some similarities to the real-estate market, it is still unique. Some houses have a personality. In that sense, they can be compared to fine art. But their price will mostly vary according to the value of other houses in the same neighborhood and how the environment develops. Is it safe? Are there many shops, schools, hospitals around? Etc.
A piece of fine art is only worth so much, to someone, if it brings them feelings. Yes, the name of the creator will make a difference. A painting, a sculpture or any other work of art, from an established artist (especially those not walking this earth no more), will gain value with age, like an old wine. But it is also quite possible that historian and art critics discover some information about the artist, that once taken out to the public, could lower the value of his or her creations. In today’s world, that is something to keep in mind.