Choosing art as an alternative form of investment is a big decision, and as with any big decision, it comes with its own assortment of considerations to make, both before and afterwards.
To guide you in your decision-making process we’ve put together a shortlist of things to consider when investing in art, both before and after building your fine art collection.
Things To Consider When Investing In Art
Instead of just listing the things to consider when investing in art, we’ve broken this list into two parts so that we can see what needs to be considered both before and after making an investment.
Things to consider before investing in art include:
Why You Want To Invest In Art
Before you even begin looking towards art as an alternative investment, it’s important to know why you want to in the first place.
After all, there are numerous great reasons to invest in art such as how accessible it has become, its multi-faceted value, and the fact that art can be enjoyed in full without losing its intrinsic value.
Knowing why to invest in art is the best first step that anyone can take when looking to start an art collection.
How The Art Market Works
Another important area of consideration before parting with any capital is to gain an understanding of how the art market works and begin building a knowledge base of the art industry.
There are many effective methods for researching the art market and it’s vital that you do conduct at least some surface-level research before making any major decisions.
You can conduct your research both online and offline making good use of art websites, journals and reports as well as by visiting art galleries in person, attending exhibitions and fairs and even art auctions.
It’s also helpful to learn some techniques for evaluating artworks. Whilst this can be tricky, due to the subjective nature of art, looking into areas such as the different career stages of artists can aid your efforts at understanding an artwork’s value.
Remember too, that learning the inner workings of the art market takes years and requires more than just research, you’ll also need a wealth of experience. The best way to streamline this process is by working with expert art advisors that have proven track records of successfully navigating the market.
Making An Art Investment Plan
One of the best ways to set yourself up for success is to make an art investment plan, and iron out some important details before you get started with building your collection.
Art investment plans should also be reviewed from time to time so even if you're adding to an existing collection, it’s worth taking some time to consider your overall plan.
Some important aspects of an art investment plan include:
Calculating your budget
At S&P Gallery, we make art accessible to everyone and a restricted budget doesn’t have to exclude you from investing in art and putting together a collection with great potential for future profitability.
The key is to calculate your budget beforehand and understand exactly what you’re working with.
Investing in art on a budget is easier than ever before, and with the variety of options available, it doesn’t even have to rule out pieces from renowned artists, thanks to investment-grade limited edition prints of blue-chip artworks.
Identifying artworks that resonate with you
By incorporating this step into your investment plan, you’ll be able to build a collection of artworks that you love and can enjoy to the full.
When you invest in artworks that resonate with you, you’ll form an emotional connection with your asset that will continually grow with time, making your investment more secure because even if you don’t see a rise in value, you still own an asset that brings you pleasure and enjoyment.
Deciding if you’ll store or display your art
One of the biggest advantages of investing in art is that you can fully consume it by displaying anywhere you choose and reaping the benefits of owning an art collection. An option for those who don’t wish to display their art, however, is to keep it in a safe and secure storage facility.
This is a good decision to make at the outset of your investment plan as both options incur costs of their own.
You may decide you would like to preserve your artwork in a state of the art storage facility, which can be regulated in both temperature and vibration; keeping your artwork in mint condition for selling in the future.
Or you may decide on displaying your artwork, in which case you’ll likely consider framing options and have your artworks professionally fitted.
Enlisting the help of an expert art advisor
An expert art advisor can help you in every aspect of your art investment journey, including putting together an effective and detailed plan to get the most out of your investment.
Not only can they fast track the research process and help you make sound choices on artwork acquisition, they’re also consistently refreshing their own specialist knowledge.
Some of the areas our S&P Gallery expert art advisors can help you are:
- Offering access to exclusive artworks
- Bespoke art investment plans to suit your budget
- Detailed and accurate art market insights
- Real-time art market trend tracking
- Reliable expert insider’s knowledge
- Comprehensive understanding of the art market
- Arranging framing, delivery and/or storage of your artwork
In fact, whether you’re new to art investment or an experienced collector, there are plenty of good reasons you need an expert art advisor to guide you through the investment process.
They can take on the heavier share of the load and remove the stress that comes with investment, navigating the art market and negotiating on your behalf; as well as utilising their sizeable networks of valuable connections.
A good art advisor can help you create a portfolio that’s in line with your preferences whilst also holding promising potential for future profitability.
Things to consider after investing in art include:
How To Manage Your Art Collection
Whether you have one piece or a hundred, you have an art collection and that comes with a level of responsibility, especially when treating it as an asset.
If displaying your collection, there are ways of caring for your artworks so as to maintain their pristine condition and quality.
If in storage, as long as the facility you’ve chosen is secure, reputable and specialises in art storage, there’s not much more you need to do.
A sometimes overlooked area of art collection management is adding new artworks that enhance your existing collection, especially as emerging artists in your portfolio start becoming more established and well known in the art world.
How to Keep Track Of The Market
The art market is vast and trends can come and go at a fast pace so for investors new and experienced, keeping track of the market is essential.
Knowing the best time to sell is how you’ll make good on your investment and you can only do this by keeping track of the art market, or by working with expert art advisors that do so on your behalf.
Remaining Patient With Your Investment
Art investment shouldn't be viewed as a get rich quick scheme and it can be easy to overlook this part of the process.
An extremely important thing to keep at the forefront of your mind after investing in art is the quality of patience.
Would You Like Help With Art investment?
At S&P Gallery we specialise in providing the highest level of confidence in the art market and art investment.
If you’d like to take the first step in your art investment journey, or if you’re looking to expand or diversify your portfolio, 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.