Investing in Art

Do you have a knack for good investments? Even if you don’t, consider nurturing your creative energy by making valued investment in art. Today, there are numerous reports by leading financial analysis that conclude the power of art collecting rivals the long-term returns of bonds. The staggering analysis has elevated art dealership to an even broader industry worldwide, and it’s one of the reasons why my organization’s clients list has expanded now to encompass people from all walks of life and socioeconomic backgrounds.

Diversifying your investment portfolio is one of the most advantageous undertakings that anyone can achieve in order to generate revenue from long-term investments. There are countless possibilities that you might consider to optimize your investments, and in recent years, art collection has been recognized as one solid strategy. 

Investing in art goes beyond just the actual purchase and also includes art authentication to protect against fraud and researching artists and pieces to determine its market value and baseline appreciation over time. There are two rules of thought when it comes to art collection: buying for pleasure or buying for investment. And in my opinion, there’s a viable way to combine these mindsets to reach a balance that satisfies both. Across human history, art has easily exceeded inflation, and is long regarded as an investment of passion that offers potential economic benefit.

Here are some cornerstones to art collection that you should consider when contemplating art investments.

It’s important to diversify your collection.

My love for art, more specifically Africa American and Diaspora art, is what brought me to this industry, and now my primary role is to procure art for clients who are open to combining their love of art collecting with financial stability as they mature. Indeed, art is beautiful, but it also serves the dual purpose of providing potential financial coverage. The prospective economic advantage is why it’s smart to invest in a diversified collection of art just as you would in the stock market. 

You could invest in several types of art such as a non-fungible token (NFT - usually a digital asset such as a piece of art, musical composition, or an item within a video game), in this case, paintings, sculptures and other luxury creative commodities. Think and assess your investment goals, artistic passions and lifestyle. For burgeoning collectors or those who are new to fine art, I advise you to consider new and emerging artists, as they tend to be less expensive than paintings or sculptures by mid-career and seasoned or established artists. The attractiveness of collecting art lies in a scenario that combines personal favorites with status pieces that are viewed as a solid investment. 

Art offers the power of tangibility.

As a tangible, real asset, art is by and large a commodity that most people understand. Oftentimes, investors make the mistake of investing in products they don’t understand, but art holds a rarefied position of being truly in the eye of the beholder. There are many works of art that aren’t universally adored but are worth millions, and investors in art have the benefit of being able to see and enjoy their investments on a daily basis in a way not available with stocks and bonds.

Furthermore, it isn’t necessary to be wealthy to purchase art, and it’s considered a safe haven for anyone looking for a valid refuge from inflation. Study after study has shown how art can bring long-term financial benefits (paywall) regardless of other asset classes. This is an important aspect that I stress to clients I consult with regularly, as art collection is a relatively untapped market.

The art collection market is changing.

The past few decades have delivered a radical change for art dealership and the sale of luxury goods. These new emerging economies have given the market more depth and resilience than previously experienced. One of the best advantages to owning artwork is how strong returns have been over time when compared to other traditional asset classes. I remind potential art collectors about how art can yield solid dividends and protect against inflation, and this has only been cemented by the success of auction sales within the past decade. 

Technology has changed a variety of industries, but in the creative world of art dealership, there has been a significant transformation that has only elevated the industry as the global market continues to expand both virtually and in real time. The appeal of investing in artwork is only likely to increase as more people search for viable options in diversifying their portfolios.

Stacey Bartels