One of the wisest financial decisions anyone with a significant net worth can make is to invest in the art market. Although building an art collection may seem to be only for those with a background in the arts and culture, you can also look at it from the investment point of view, with the added benefit of aesthetics of course. If you’re seriously looking at the art market, you’ll have to consider asking yourself some important questions. These include:
· Is my interest in fuelled by the desire to make a smart investment or to satisfy my taste for art?
· What styles, genres, periods and artists am I interested in?
· Will I display my collection for others to see, or keep it hidden in private?
Challenges in the Art Market
The biggest problem as far as investing is concerned is the scarcity of financial experts and advisers whose expertise branches out in fine art. Still, there are financial services firms that have specialists on staff who have an intimate knowledge of art. However, they are far and few between, so it may be best to consult an independent art consultant to get advice when moving money around in the market.
It also pays to do your homework, especially if you’re mainly looking to start a collection for investment purposes. Advisers can only provide advice, but at the end of the day, the decision of buying a piece or not lies in your hands.
Look for Works that Appreciate in Value
Any collector who knows what he, or she, is doing will look for art that has an appreciating value. Whatever your motivation for buying, this should be your mindset as well. However, a problem can arise here that might throw a wrench in your plans for investment. Even the most knowledgeable art experts will not be able to predict styles, genres and artists will be sought after in the future. As tastes in art shift over time, this could affect the value of a piece you want to buy.
In any case, investing in art can be a very fun endeavour, especially if you’re in the beginning stages of building a collection. The key to having as smooth an experience in possible is to contact the right people who can point you to the right direction, whether it’s to provide you with insight in the art world, appraise a piece or provide advice in tax matters with art.