Investing in art on a budget may seem like an impossible goal, so what can you do if you want to start an art collection but feel limited by your budget?
Becoming an art investor doesn’t need to be intimidating and even with a budget of £10,000 or less, you can get onto the art investment ladder.
At S&P Gallery, we believe in making art collection and the art market accessible to everyone.
We’ve put together these 6 steps to help you become an art investor on a budget.
How To Invest In Art On A Budget
It’s no secret that right now is the best time to invest in art, but if you have a limited budget, you may think that it’s an impossible task. Contrary to popular belief, however, you don’t need a huge amount of wealth to start collecting art and become an investor.
Our S&P Gallery expert art advisors have put together 6 steps to help you:
- Calculate And Set Your Budget
- Conduct Art Market Research
- Look At Artists At Different Career Stages
- Invest In Artworks That You Love
- Be Willing To Play The Long Game
- Enlist The Help Of Expert Art Advisors
Calculate And Set Your Budget
Whatever the amount is that you’re willing to invest in art, whether that’s £100, £1,000 or £10,000; it’s important that you have a clear budget in mind before you start purchasing artworks. Knowing your budget helps to keep you more focused and also make the most of the money you are spending.
There’s nothing wrong with starting small and adding to your collection over time, a tight budget doesn’t and shouldn’t rule you out of the art market.
Another option is to visit online art galleries like S&P Gallery, they enable you to easily compare artworks and sift through different pieces without feeling intimidated or anxious about asking for more information on a particular piece.
The art world has changed as a result of the pandemic, coupled with the internet, the art market has become much more accessible, especially for new investors and collectors.
Conduct Art Market Research
Any serious art investor or collector will start their process with diligent research, your research journey should begin very broadly and gradually narrow down as you begin to learn and understand more about the art industry.
To successfully find and collect the information you need, and to attain an understanding of the art market, you’ll need a solid plan of approach and some useful methods for researching the art market.
It may take an extra level of research when investing in art on a budget, to find artworks that are most likely to hold or increase value and have the highest potential for future profitability. As with any investment, you should know exactly what you’re putting your money into before doing so.
Look At Artists At Different Career Stages
A helpful step to take when investing in art on a budget is looking into artists at different career stages, and different types of art from those artists too. Doing so can also increase your understanding of evaluating artworks.
When you’re working with a budget and looking at artists at different career stages, ideas worth considering to get the most out of your collection are:
- Original artworks from emerging artists
- Limited edition prints from Established and Blue-Chip artists
Original Artworks From Emerging Artists
An emerging artist is an individual at the beginning of their art career, beginning to garner attention and achieve some recognition despite not having yet established a reputation; it has nothing to do with an artist’s age.
With emerging artists, there is little to no data on their works being resold on the secondary market, making it slightly harder to assess the resale value, therefore you will need to conduct some research into any exhibitions, awards, collectors and gallery representation behind the artist. Having an expert with a keen eye for profitable art will also prove valuable in this regard.
It’s important to note too that emerging artists’ works do have the potential for great rewards but there is a higher risk, and collecting only art from emerging artists will result in an undiversified portfolio, increasing that risk.
Some of the emerging artists represented by S&P Gallery:
Limited Edition Prints From Established And Blue-Chip Artists
An affordable way to add some established and blue-chip artists to your investment portfolio is to look out for limited edition prints.
An established artist is at a mature stage of their career, with a considerable body of work and is achieving at a higher level, receiving both national and international recognition and following. Again nothing to do with an artist’s age, they will have a significant number of global solo exhibitions at distinguished galleries and museums under their belt.
A blue-chip artist is a well-established, globally recognised artist, even viewed as a “national figure”, also recognised as having made significant contributions to the art world and the discipline they practice. They’re most often world-renowned names that incite enthusiasm and fervour amongst experienced collectors.
The works of both established and blue-chip artists will have some records and data of being sold on the secondary market, and the rising value of their works will be evident.
Limited edition prints provide investors and collectors at every level the opportunity to make an entry point into adding some household names to portfolios and collections. Worth noting too, limited editions are investment-grade artworks that hold or increase in value over time.
Knowing how limited editions work is useful when looking into art prints from well-known artists, prints that are signed by either the artist or their estate, accompanied by a valid certificate of authenticity and purchased from a reputable seller are the safest option and most likely to pay off.
Invest In Artworks That You Love
Investing in art you love is a good rule of thumb in general, but all the more so when you’re building your collection on a budget.
Throughout your research process of looking into the art market and at different artists and art styles, you’ll begin to gain a better understanding of what you do and don’t like. It’s important to know your own preferences when it comes to purchasing art and think about what artwork you want to live with.
This step also makes investing in art more secure, because if you truly love the art you collect, you have less to lose if it doesn’t rise in value. You’ll continue to own a collection that you love and appreciate and can proudly display in your home; as opposed to getting caught up in trends and perhaps ending up stuck with artworks that don’t resonate with you.
By combining your love for particular artworks with informed decisions based on research and expert guidance, you can build a budget-friendly art collection that you can enjoy to the full and form an emotional connection with.
When you invest in artworks you love, the potential future profitability and value of them rising becomes an added benefit, rather than the sole purpose.
Be Willing To Play The Long Game
Like any market, the art market can rise and fall at times and although it isn’t tied to the stock market and acts as an extremely stable asset class; there are occasions when trends come and go rather unpredictably.
No one can predict the future of the art market with 100% accuracy, and profits from art aren’t likely to happen overnight, so you do need to be willing to take your time and be patient with your investment.
Ultimately, art is an investment that you should think about in terms of years, rather than weeks or months.
Enlist The Help Of Expert Art Advisors
One way to help with every step listed above and more, is to enlist the help of expert art advisors.
This is true whether you’re new to art investment or an experienced collector. Art advisors remove the majority of the legwork and make it a stress-free process; helping you build or add to an art collection that is in line with your personal preferences and still holds promising future prospects.
Developing the eye for profitable art can take many years of researching and learning, building a wealth of knowledge and understanding of the art market. A creditable art consultant will be available to put their experience and professional knowledge to good use in helping you navigate and negotiate the terrain of the art world.
They use their careers studying the art market, observing its fluctuations and learning the psychology behind the buying and selling process.
Reputable art brokers don’t only have a wealth of experience and real-time art market insights, they also have a sizeable network of valuable connections.
There are many reasons to enlist the help of an expert art advisor; removing the stress of investment and the somewhat daunting task of navigating the art market are among the main ones.
How To Start Collecting Art On A Budget
So through this article, we’ve established that investing in art on a budget is possible, and worthwhile, and there’s no need to feel limited by your budget when looking to build an art collection that has future potential for profit.
The key steps to building your budget art collection are to calculate and set your budget, taking into consideration the money you have to spend now, and perhaps working out a longer-term budget to work alongside that too.
Conducting your research and being diligent in doing so is of the utmost importance. Weighing up artists at different career stages; perhaps building a collection consisting of original artworks from emerging artists as well as limited edition prints from established and blue-chip artists can be a great idea.
We stressed the key advice for any investor at any level and regardless of budget which is to purchase art that you love and that resonates with you, and be willing to play the long game.
The wisest course would be to seek the wisdom of an experienced guide, and by enlisting the help of an expert art advisor you can ensure to get the most out of the previous steps, as well as be set up for the best chances of success, based on knowledge, insights, and experience.
Are You Looking To Invest In Art On A Budget?
At S&P Gallery we specialise in providing the highest level of confidence in the art market and art investment, and we can provide this confidence even to those that are investing on a budget.
If you’d like to take the first step in your art investment journey, or even if you’re looking to expand or diversify your portfolio, feel free to contact our expert art advisors for the finest professional art investment guidance.
To learn more about the benefits of investing in art and investing with S&P Gallery, as well as our market performance some of the returns realised from our clients, you could also download our free art investment guide, which is packed with valuable information and insights.