An article in The Telegraph last year stated “Beware of the risks before investing in the booming art market”, while Bloomberg a month earlier published the article “The Smarter Way to Invest in Art”.
Both art critics and investors seem to be divided in the hot topic on whether or not to invest in art, and how profitable it might be. And maybe the accurate term should be “collecting art” as the return on the investment could be quite volatile. Some art-investment pros speak about a thrilling 12%, while others whisper of a poor 1%.
Either way there are several recommendations out there if you are considering buying art, and we have listed 10 things you need to know before investing in art. We hope they will help guide you in the “art jungle”.
- Research any living artists who catch your eye. Learn about their education, their commissions and their exhibits.
- Visit museums, galleries and art institutions everywhere you go so you can recognize potential movers and shakers and investigate emerging artists.
- If you’re considering a piece by a renowned artist, get at least two independent valuations.
- Look for quality, and don’t buy anything without requesting an official condition report.
- Visit galleries, art fairs and speak to as many people in the industry as you can. When you hear many different people saying the same thing, you might be on to something.
- If you want a truly safe investment, purchase a work by a deceased important artist. You pay more but have less risk, as they are already “blue chip”.
- If you love a specific work and it brings you happiness, it pays off from day one.
- You don’t have to have billions to get into the game, but it helps, art is expensive. Look for upcoming artists and buy unique works, even if it’s a drawing.
- Diversification is key – don’t trust in the fame and glory of one single artist.
- Buy your investment in art when you feel confident of it’s worth, price and ability to grow in value.
Last but not least quoting Fabian Bocart, founder of the Brussels-based advisory firm Tutela “If you love it, buy it. If you choose well, one day you will be able to sell for a profit. And if you choose very well, you won’t want to.”