Forget about investing in stocks, houses or gold. Investing in art can be much more fun and very profitable when you know what you are doing. It may seem a bit challenging at first, because the value of art is based on subjective interpretation. So, unlike investing in companies for instance, there is no cash flow or earnings that can determine the value. But if you learn about investing in artworks, they can be a great source of income in a matter of years. Here are 5 tips from our art auctioneers to take into account when you start investing in art.
1. Do your Research
It is crucial to do your research first when investing in art. Read about the artist’s life and his body of work. Gather as much information as possible to put the artwork into context. For instance, did the artist win any important awards? Is his work collected by major museums around the world? Which collectors own his works? Are the prices of the artist’s works rising? The more information you can find, the more it can give you an indication of the long-term increase in value.
2. Invest in Unique Pieces
When you are looking for an affordable piece of art, prints and photos are a great choice. But if you are looking for an investment, you should buy original pieces. A reproducible work is not going to increase in price, because it is rarity that gives the work value. When buying an original work, make sure the signature of the artist is present or that it comes with a certificate of authenticity.
Escher - Sky and Water sold for €24,500 on Catawiki
3. Don't Get Caught Up in the Hypes
When it comes to art, hypes come and go. Don’t get caught up in them. The best artists are usually not involved in hypes. It takes time to build up a career as an artist, and the best artists take their time. Remember Vincent van Gogh? He was not even recognised in his own time. Artwork involved in trends might seem like a good investment, but it's unlikely they will become timeless masterpieces.
4. Classical Art Versus Contemporary Art
Investing in classical art can be a safer option; prices are more stable and grow steadily. Investing in contemporary art can be more risky, but can also bring much greater profits. Not all contemporary artworks will turn out to be a good investment, but some will definitely gain a lot of value. The value of street art is growing more and more, and this might well be the next Pop Art movement. Artists like Banksy and Shepard Fairey (OBEY) have increased in value over the last years.
Even though art can be a great investment, buying art is not all about making money. Remember to buy a piece of art that you truly love. Unlike other investments, you will not receive any interest while owning the work. But you can get great pleasure out of displaying the work and great art can inspire you in so many ways. You can start buying your artworks at our Modern Art and Classic Art auctions now, and sell your art on our platform again with profit.