IS ART A GOOD INVESTMENT?
Here at ArtFIND.ca, we have a wide variety of art for sale. Our collection includes different mediums, styles, sizes and processes to fit any budget. Our collection will interest the first-time art buyer, the serious collector and anyone else in between!
But is art really a good investment? Many authorities on the subject agree that in today’s unpredictable market, assets such as silver, wine, art and gold (or “SWAG” – a term coined by analyst Joe Roseman of Investment Week), manage to resist economic fluctuations. In an unsteady market, people are drawn to stability for obvious reasons and “SWAG” assets are a favourite as they have proven over time to be dependable. They have the historical precedence of desirability and can be bought and stored almost indefinitely. Their returns are not related to the patterns of the stock market and add variety to any portfolio.
What if you are a rookie when it comes to buying art? Well then, you’ve come to the right place, because in this week’s blog, I will provide some tips and tricks for the first time art buyer and weigh the pros and cons of starting an art collection as an investment.
Let’s first talk about the variations of art that we offer here at ArtFIND.ca and what the advantages to buying each of them would be.
Artists have devoted a tremendous amount of emotional energy, effort and creativity into their works and they want to have their work appreciated and enjoyed by as many people as possible. Limited Edition prints are the perfect way for this to happen! Limited Edition art prints have very much become a part of our modern world because they can make fine art masterpieces accessible to just about anyone. Limited Edition prints should not be looked as lesser substitutes for the original piece…just look at how many famous and well-celebrated artists of our time that have allowed their works to be enjoyed by everyone!
Limited Edition reproductions are far superior to mass produced modern art prints both in the printing process, the quality of the inks and the quality of the canvas or paper substrate. And when further produced to Fine Art Trade Guild standards, the inks and substrate are assured of being of the very best quality.
Another advantage is that art publishers only produce Limited Editions of works that they view favourably and that they believe have investment potential. They, as professionals in this field, know what will sell well and therefore can potentially increase in value. So there is no risk of buying a highly priced original that may not hold its value when deciding to purchase Limited Edition artwork.
The satisfaction of owning a genuine piece of art of which very few exist is huge and the opportunity to do this at an affordable price are the main advantages of investing in Limited Edition art.
Original Works of Art
Being art lovers ourselves here at ArtFIND.ca, it is clear to see the appeal of investing in art. You buy a piece of art that you love and then earn returns while it is displayed and admired in your home. Whether swayed by personal enjoyment or financial gains, recent years have seen many people turning to art as an investment option.
Investing in art has been described as a “passion investment”, however over the past decade or so, art has interested investors all over the world. Because art is tangible, compact and costs little to maintain, art has had its value redefined as a handsome alternative investment within a portfolio of assets, with excellent returns that can be expected in the mid- to long-term.
So it would seem, investing in art seems to be taking off for the first time buyer. According to well-known auction house Christie’s, over 19% of their buyers have been brand-new clients over the past few years.
From a collecting standpoint, art with unique or original aspects tends to be more collectible over time, more so than art that borrows heavily from other artists or styles of art. Seasoned collectors prefer buying pieces that reflect exceptional creativity as well as mastery of medium. They are more supportive of artists who continually evolve with their careers and the times. However, if you are personally drawn to a certain artist who follows suit of a certain style or technique, then by all means go ahead and collect it. Remember…there is no right and wrong when it comes to art…it is a personal and individual choice!
Final Tips for Investing in Art
Approach the art-buying experience with your eyes and ears wide open. Some gallery owners will tell you that buying art is an emotional decision. When choosing to buy art as an investment, you cannot think on that level. Research any living artists who catch your eye and learn about their education, their commissions and their exhibits.
Visit museums, galleries and art institutions in your area regularly so you can recognize potential movers and shakers in your region. If you are considering buying a piece by a prominent artist, be sure to get an appraisal from a trustworthy source. Look for quality and never buy anything in poor condition. Look also at contemporary art as it remains the most volatile market and also the one offering the top rewards.
Fluctuations in the market for one artist can and often will affect the market for another, so it is a good idea to become familiar with art movements and art history to help yourself better understand these connections.
When starting your collection, variety is important, which means try to include not only fine art, but perhaps mix it up with some abstract or decorative art. Value is not only found in the artist, but in the quality of the work. Always buy the best you can afford. Financial advisors generally recommend putting approximately 5%-10% of your investment portfolio into art assets.
All of this doesn’t mean you shouldn’t buy art, but buy it for the right reasons, be it financial or personal. If you buy art that you love, then you will still be happy to have it and enjoy it every day – even if it doesn’t make you into a millionaire overnight!
Director – ArtFIND.ca