Generally speaking, art can be a great investment but you have to know exactly what to buy. Today’s flavour of the month may be out of favour in ten years and those that are not critically acclaimed by today’s standard may be highly fashionable in a decade’s time. Look, for example, to the Impressionists – they did receive some critical acclaim during their lifetimes but the movement was largely considered poorly.
What Kind of Returns can I Expect?
This depends on the art itself – an artwork is only worth as much as someone will pay for it. If you choose correctly, your investment will at least keep pace with inflation. If you really choose well, you will find that the art can appreciate in value enormously. It is, however, a long term investment. Art, especially at the upper end of the scale, can take a while to sell. It must not be considered a liquid investment.
I Don’t Have a Clue about Art
In this case, it is best to buy art for its own sake. Buy pieces that you love and you will, at the very least, get a lot of enjoyment from the pieces, even if they do not sell. It is tempting to go out and buy the work of the “next big thing” but keep in mind that if you choose incorrectly, the art may not appreciate in value at all. You need, therefore, to ensure that you choose works that you love.
I have Some Idea about Art
As above, you need to ensure that the art you buy is aesthetically pleasing to you. You could choose an emerging artist who shows promise or moderately successful artists. Choose carefully for an excellent return on your investment.
A New Trend from Hong Kong
Another way to make a return from your investment has emerged in Hong Kong. There is a new group of investors that buy art with the express intent to rent it out. This way they get an excellent return on their investment and the renters get a great piece of art to hang without the capital outlay. Art can also be swopped out every few months for a new look. Whichever way you decide to go, you should ensure that you do proper research before spending a lot of money