6 Practices Every Art Investor Should Know

Jun 07, 2021 • by S&P Gallery

Whether you're a first time investor or a well versed collector, we all need a helping hand sometimes to navigate the jargon filled world of investing. The art investment landscape can easily feel daunting, which is why we've complied 6 non-negotiables when considering your next investment in the art market, whether big or small.

Research

You must treat art like any other investment, which means you have to conduct thorough research over months. You should begin by observing current trends and visiting art auctions, and learning about the news surrounding them. To better understand what limited edition prints are of high value, you should chat to an art specialist or broker who will give you an insight.

Next, actively get involved in the community. You should regularly attend art fairs, auctions and exhibits and chat with others. At these events, you will get the opportunity to build your network and learn more about the industry around you.

Generally, artists who are alive who have many pieces of work under their name tend to have a lower value. On the contrary, limited edition prints by artists who no longer exist tend to be more highly sought after and expensive to buy. A high profile example of this is deceased artist, Claude Monet's Meules (1890–91) which recently sold for $110.7 million in May 2019 via Sotheby's.

Once you've gained a baseline set of knowledge, go out and visit an auction/sale.

At first, the events may come across as a little intimidating, especially if you engage in conversation with consultants and curators. You may find that the advice experts provide on a valuation may be different to how you feel about a certain piece of art. Don't let this intimidate or distract you. To help you get a feel for these events and become more comfortable as an art investor, you can always attend online auctions.

Make An Investment Plan, Or Let Us Advise You 

When investing in limited edition prints, you don't want to run no without a plan or strategy. Simply having a diligent plan in place will help give you a better idea of what art you'd like to invest in. To give you an idea of what to include in your plan, here is an insight:

Budget 

It can be easier to get carried away with the sheer beauty of a piece or the adrenaline surge from an art auction if you love art. However, it's important to allocate a set amount of money from the start for a specific piece of artwork you're looking for and money to cover the storage costs. It's better to have an idea of the minimum and maximum you're prepared to spend so you have more money left over for other pieces. 

Style 

You might want to choose what type of art style you're looking for to narrow down your choices and help you know which events to attend. Consider whether you want art that's from the renaissance era, modernist art, impressionist, contemporary, still life, abstract and much more. 

Type of artwork

It's also critical you have an idea of the type of artwork you want to invest in. For example, are you looking for an original, print, reproduction or Gicleés? If you're not sure, here is a breakdown of what they are:

  • Original: Just like the name suggests, a one of a kind original piece by the artist.
  • Limited- Edition Print: Affordable copies of the original artwork.
  • Reproduction: Copies of the original artwork and the cheapest type of print, but with no value.
  • Gicleés: A higher-quality museum-like piece that cost more than a normal print.

This, alongside the art category, will help give you a specific niche to invest in and become knowledgeable about.

These are just a few small insights into what you might want to include in your investment plan. If you want an investment plan that's thorough and benefits you, contact us today, and we will make one for you.

Invest In Pieces That Resonate With You

When you plan to invest in the art world, you don't want to do so half-heartedly. Art investment should be your passion, which means you should appreciate the beauty of art and the process involved. 

Before you plan to buy any piece, you should make sure you have an emotional connection to the piece of art. The right art piece must move you and make you want to see it every day. 

Plus, if you like it enough, that connection is only bound to grow stronger, and this is what makes that piece of art an investment over time. The truth is, most art pieces you have a connection with will outlast other materialistic items you own. After all, you want a piece to admire and share the beauty of it with others around you. 

If you're not sure about what you like, visit museums and galleries to get an idea. The art that you like should invoke certain feelings, memories and emotions. 

Patience

When investing in art, playing the waiting game is one of the most important strategies, you have to adopt. Good art investments don't just happen overnight; it takes time.

Developing the art of patience will help keep you focused on your investment goals. Irespecitive of market highs and lows, in all probability your reasons for investing will have stayed the same

Some shrewd investors have pre-determined their own exit strategy knowing in advance how far an investment’s value must fall or rise before they decide on selling on.

Track The Market

Without inside insight on market trends, it's very difficult to fully stay on top of the art market. Whether we're talking global or national, it's huge and constantly changing all of the time. Therefore by having a broker who is a specialist in the art you like, they will be able to advise well.

Such advice they can provide will revolve around specific pieces based on the size and quality of your collection. Similarly, they will keep you updated about existing trends and share information on the best practices for limited edition print investments. 

Speak To An Advisor Today 

While there are many benefits to investing in the art market, there are many risks associated with it. There are investment options or strategies that may not work well for you. However, the risks and strategies should not prevent you from investing. 

A great professional who can guide you is an art advisor. These people are connoisseurs in past, present and modern-day limited edition prints, who can help you evaluate work, verify its authenticity, provide a great judgement and more. Enquire with us today about a free investment consultation to know if the art you like suits your portfolio.