Investing in art is big business. Look at some world-renowned paintings and what they are selling for at auctions. In 2017 alone, a da Vinci painting sold for US$450 million. Although it was the most expensive painting ever sold, many paintings sell for millions of dollars.
This guide will show you precisely what to consider when getting into the world of art investments.
What to Consider Before Investing in Art
Art can be highly lucrative and provides significant profits for people who know art. You will need to do a lot of research into artists, art, and the market before thinking about getting started.
Art will not always sell quickly. Sometimes it might even take decades to sell but provide millions in profits. The market is quite crowded with art investments, so you will need to be quick to spot the right art piece for your first investment.
Investments can also be made by entrusting new and upcoming artists to become popular among collectors.
What Sets Art Apart from Other Investments
There are many ways of investing, such as stock markets. Art by nature is completely different as every piece of art is differently valued, or there may be fake reproductions, or it may lose value in a second.
Is Art Investment Lucrative?
Art investments are highly lucrative. But you win some, and you lose some is the golden rule to remember. No investments are always successful, and it remains a chance. If you should sell your paintings using auctioning through auctioning houses, remember that you may lose up to 40% of your profit.
What to Look for in Art
With paintings and investments, you will need to look into the artist. Although upcoming artists can sometimes prove to be lucrative investments, your first investment should be an artist with a track record of popularity.
An established artist may have had a particular period when they did famous work. Whether they are still producing relevant work or not, those pieces may still have value.
By following this guide, you know exactly how to approach your first investment.