You might have heard plenty about art pieces that were initially purchased for a pittance, only to be later sold for staggering sums in the range of millions. The people who have first bought the respective art pieces, to sell them afterward with such a fantastic return on investment surely must have had incredible business acumen at the time. But where does the truth lie? Can anyone make money by investing in art? Here are some thoughts on the matter.
Learn more about art in general
As a novice, you might feel tempted to think that the only art pieces worth investing in are paintings since they seem to be the ones that always make the headlines. But art means more than just paintings. Beautiful art pieces can belong to sculpture, photography, mixed media, and even digital and video.
Also, you must be aware of the science behind original pieces, prints, and reproductions. You may think that only the originals have value, but that is not true. Prints carry some value, as well, and there are also unique prints that are called giclées. These are superior in value to regular prints, and they are considered to have museum quality. Of course, they cannot be valued as the same price as the originals, but they do come with certificates of authenticity, and they can be turned into money.
Understand the challenge of selling
Since we are talking here about investing in art, we need to make something clear. Buying art is easy. You can buy it from galleries, or you can participate in auctions, as the only thing you need to prove is that you have a working credit card.
But selling is a different matter. Art galleries prefer to promote and sell new artwork from successful artists, while auction houses prefer the tried and tested art pieces. Consignment deals can be tricky to strike, and they might also contain a lot of fine print that might put you at a disadvantage.
Develop awareness against marketing hype
It is nothing unusual for auction houses and even individual appraisers to give information on how much a particular piece of art is expected to sell for, but the truth is you need to be prepared to take everything with a pinch of salt. There is such a thing as marketing hype for art, too, and many will try to over-inflate the value of a specific art piece, in hopes of gathering more interest from potential investors.
Be ready to live with your purchase
Should the art piece you purchase prove to be a not so easy-to-sell item, you must be prepared to live with it. In other words, buy art that you can enjoy. Purchase something that you will like to look at, in the event that you don’t find a buyer for it.