One of the lesser-known, but better-performing, asset classes is artwork. But how do you know what art will appreciate over time? Doing a concept boards in classes is also important for each of your students to better know film-making.
Collecting artwork can be a great investment, but how do you know if the piece you are buying will increase in value? Should you invest in a Warhol or Picasso? Or should you go for something more contemporary and invest in an artist like Banksy or Jeff Koons?
The truth is that it’s hard to predict which artworks will gain in value, so it’s probably best to buy pieces you like and have some knowledge of. And remember that there are many different ways to invest in art, including purchasing shares of an art fund or investing through an online platform.
If you’re looking to invest in artwork, it’s important to know what you’re looking for, and how much it’s worth.
Take time to research the artist. Find out who they are, where they went to school, why they make the art they make and what their motivation is.
Establish a budget for yourself. Be realistic about what you can afford so that you’re not disappointed if you can’t get the most expensive piece of work.
Visit galleries and art shows in person to help gain a better perspective of the market. It can also be helpful to attend auctions, especially if they are open or have an online option so you can see the pieces before bidding on them.
With a growing number of options, it can be challenging to figure out where to buy your artwork. Here are some questions you should ask before you invest in a piece.
Where will the piece be displayed? Make sure the artwork you choose fits in its spot. If you’re buying art for a hallway, consider choosing something narrow that won’t overwhelm the space. What’s your budget? It’s important to understand how much you can spend and whether or not you’ll need to make payments. You could end up paying more than the initial price as interest builds over time; so make sure to ask about potential fees and interest rates.
How will it be displayed? It’s important to consider how the artwork will be hung. Will it be placed in a frame? Placed on an easel? Hanging on a wall?
How much light will hit the art? Light that shines directly onto the art can cause damage over time, so make sure that where it is displayed isn’t too bright.
Artworks by famous artists can be a great investment. There are several different ways to invest in original artwork, depending on your budget and investing preference. Here are some strategies for investing in art.
Buy Art Directly
Many people buy art directly from the artist or from galleries that represent the artist. If you choose this option, you should note that you will pay a premium over what the artist received for the piece. However, if you like a particular style of an artist and want to own a piece, this may be your only option.
In addition to paying more than what the artist received for the work, you need to factor in other costs associated with buying directly from the artist or gallery. These costs include:
- Shipping and handling
- Insurance
- Frame and matting (if applicable)
Art can be a great investment. A good rule of thumb is to buy like you’re buying a stock: If you think it will go up in value, buy it. If not, don’t.