One rule every good investor knows is: You should never put all your eggs in one basket. From investing in stocks, bonds, and real estate, investors are now moving towards Investing in fine art. A trusted strategy that serves to secure and grow wealth despite market trends. In this blog, we explore how to approach art investments.
First things first, you need to educate yourself about the art market. It involves understanding art history by getting familiar with different art periods, styles, and notable artists. Once familiarity has been established, the investor can move towards studying market. A good study involves a thorough research of past sales, market trends and price fluctuations of various pieces of art.
Secondly, it’s important to establish your investment goals. Some investors prefer short term investments that give quick gains, while others prefer long term investments that give slow gains. Well known works of art such as the likes of Picasso and Monet are often more stable with quick gains compared to those of emerging artists. A starter art investor is encouraged to begin with established artists as they carry a lower risk.
However, before diving into the art investment world, you are highly encouraged to consult art advisors. The art world is ever changing and with it comes new technologies such as NFTs. Having a friend or two can aid in navigating the complex works. An expert will help you ensure authenticity and provenance of a piece of art before investing.
One misconception is that you have to be rich to invest in art. Most beginners without alot of money often participate by taking advantage of public art funds such as Anthea. Art funds are managed portfolios of art that allow investors to own shares in high-value works without purchasing the entire piece.