How Much Should Beginners Invest in the Art Market?

Jan 18, 2021 • by S&P Gallery

The art sector is a highly rewarding area for those looking to buy art as a financial investment, with year-on-year global sales rising 6%. Having thrived on a sense of exclusivity, initial investors may doubt as to whether this is a market for them, but with such an array of exciting and profitable works available in our collection, choosing Smith & Partner to guide you through the process of initial investments is sure to be a rewarding journey for any individual regardless of network and budget.

By combining a diverse knowledge of the international art market with a desire to create profitable collections for all of our clients, Smith & Partner’s bespoke approach ensures growth and stability from the outset. With the right support and knowledge base provided by our brokers, beginners in the art market can make sizeable gains in as little as 12 months. 

But, with such a wide selection of limited-edition art to chose from, you may be stuck wondering where's a good place to start. Some things which could affect your decision may include:

  • Costs Included?
  • Investment Period?
  • Choosing between an Original or Reproduction Piece?
  • Our Experts Recommendations

Costs Included?

A key consideration for any art investor is how much of your wealth to invest in relation to the rest of your estate. Firstly, decide on a budget that feels comfortable. Keen investors have invested up to 20% of their wealth into the art market, whereas others invest around 10%. Secondly, take note that your investment also includes storage and maintenance costs to keep your investment in prime condition, with the first £18,000 completely free of capital gains tax.

Investment Period?

It's important to consider that successful art investors do not expect immediate returns as individual growth rates of artworks can vary. With this in mind, examine the feasibility of keeping your money invested for an extended period of time as you wait for your asset to increase in value.

Deloitte 2019 reports detail that artworks kept for 10 years accrued sizeable gains in comparison to those that were quickly resold. A great investor will resist the urge to cash in too early, as they understand there is consistent growth in the art market. With Smith & Partner’s expert brokers by your side, we will guide you through the process. Your personal broker will be keeping a keen eye on your investment at all times and will reach out to let you know when the best time to sell your artwork will be based on market trends, demand for that particular artist, and recent sales of similar works.

Choosing between an Original or Reproduction Piece?

The type of investment that a beginner is willing or able to make has a relative impact on their returns. Inevitably, the more valuable your initial investment, the higher returns you can expect to see. We understand though that not every investor will be looking to purchase an original artwork. 

With that considered, we have a wide range of quality limited-edition art prints for our savvy investors still looking for high profitability investment pieces- including collections from prestigious names like Van Gogh, Monet, De Lempicka, Warhol, and many more.

What are limited-edition art prints? A limited edition print is a series of identical prints restricted to a one-time printing of a certain number of pieces. Generally, edition sizes range from 5-20 up to 500 and once an edition is sold out it is no longer available.

At Smith & Partner, we only source the highest quality Giclée prints from in-demand artists, including old masters, blue-chip and emerging artists. Our collection holds some of the world’s best artists to invest in for 2021. The popularity of Giclée has put the work of acclaimed artists in the reach of more people, with institutions such as galleries and world-renown museums holding limited-edition artworks in their collections

If you would like to compare our original artwork prices to our high-quality Glicee limited edition prints, arrange a call with one of our art brokers.

Our Experts Recommendations

Smith & Partner recommend an initial investment of anything between £10,000- £20,000 on 2 to 3 pieces of a limited-edition range of fine art prints. This will set up an enticing portfolio that you can add to at any point you wish. Comparatively, seasoned investors in the art market may invest anywhere above £50,000.

Understandably, this can vary based on a number of different factors. Your budget, interests, and existing portfolio are all taken into consideration before making an agreement. In order for us to get a better understanding of the best investment to suit your needs, book in for a free consultation with one of our art experts now. 

Increase Your Knowledge, And Find Someone That Has More

We encourage all our investors to research into the art market alongside our consultancy, however, google alone is no substitute for expert advice. Our art expert's years of experience and education in the art market can be the difference between financial gain and loss, so trust in them to offer guidance that will most likely reap the greatest results.