These days, many long-term investors are looking to diversify their portfolios by investing in different, even exotic, asset classes. Some prefer to invest their money in rare coins and jewelry, while others invest in fine wines. Art is an investment class that is quickly becoming very popular. Not only can fine arts enhance your home decor and evoke powerful emotions, but it can also convey value by hanging on your living room wall. Let’s talk about investing in art for beginners without a million dollars.
Disclosure: This post contains affiliate links and I will be compensated when you make a purchase after clicking on my links, there is no extra cost to you
You can invest in fine art without buying a million-dollar painting straight away. check out these ideas.
Types of Art:
There are many types of art that a new investor can explore. Newbies tend to think in images automatically, but art cuts across a wide range of media, styles, and classifications. There are a few other art forms that could be considered as well, sparking a heated debate among purists. The creators of the work, however, are the key to decide.
Production potters and glassblowers are generally not considered artists; there is nothing unique about the parts they produce. However, some of them use these media exclusively to create unique works, they have achieved a certain reputation and are mostly highly regarded artists.
How to Buy Works of Art:
Ultimately the teachers followed a route in artistic investments. Masterworks is an art investment platform that makes the masses have a very exclusive and elite art world accessible to the masses. The company’s business model is to buy promising artworks and sell them for a profit.
The important thing is to do a lot of research into the art of investing and look into the trends and backgrounds of each artists. Successful millionaire investors also recommend buying art that you are passionate about and feel a connection to, or else it is not worth it (search on YouTube for Millionaire Art Investor interviews). Overall, art is a way to express yourself and your tastes.
Tip: Remember that there are different types of art including traditional canvas, prints, sculptures and more. If you are just getting started with a low budget you can choose to buy original prints for a lower cost. If and when the artist takes off well you can find opportunities to resell the prints at a higher price or keep them for your own enjoyment.
Masterworks buys artwork from pioneering auctions and transfers ownership to shareholders. A small investor cannot expect to buy expensive works of art. Before the launch of the company, investors had few options for reliable art investment firms. But now, the company offers investors the opportunity to pool their resources and share the income from lucrative investments. Masterworks specializes in world-class art investments, the richest and most rewarding part of the art world, which has grown exponentially over the last decade. Finally, this elite investment class is now available to ordinary investors.
How to Invest in Works of Art
Now that you established the basics, let’s make a step-by-step plan for purchasing your first piece of art. Keep the benefits and considerations listed above in mind when shopping for art and only buy a piece that you like, not because a gallery owner says it is environmentally friendly to double its price in a year.
What you will need before you start
Before buying any art, you will need a place to display it (or at least store it). Art is not depreciated, but can be damaged if mishandled. If you have more space in your home other than direct light and extreme temperatures, consider using that space as an art display. Also, set a budget for your first art purchase and dedicate yourself to it.
Find a platform that works for you
- Auction Houses: Sotheby’s and Christie’s are the two most popular auction houses for works of art.
- Art Galleries: Cities like New York are full of art galleries and works are available for purchase. Take your time and shop around on a few different ones.
- Individual Sellers – It is possible to benefit from sourcing art from a single source, especially if the art does not match. Also, the experience of the gallery owner is generally lacking. If you want to buy from a single seller, make sure your research on the part is thorough.
- Online Marketplaces – You can buy art directly from your computer using online marketplaces like Masterworks.
Create your investment policy
Now is the time to establish a plan of attack. But what should your art investment strategy be? Much will depend on your budget, time, and viewing ability. Many art investment strategies look a lot like your stock premiums. Here are a few examples:
- Assumption: buy art from lesser-known artists and save it until they become famous, but do your research first.
- Buy and Keep: Find antique masterpieces or first-class pieces and keep them as their value increases.
Buy your piece
Once you have a plan, it’s time to find your first piece. Take advantage of auction houses, galleries, and individual sellers to find the best artwork to start your collection. Sell a price within your budget and buy the part.
Sell when you’re ready
A good rule of thumb is to keep any artwork you buy for at least 3 years and appreciate it. Be sure to keep all documents that prove the authenticity of the work. Display or store your piece properly to avoid damage and sell it when you have produced a sufficiently substantial result.
Before you go, I hope this gives you motivation for investing in art for beginners without a million dollars. If you have experience in buying art put it in the comments below.