Art Investing Methods and Resources
Many people hear topic of art investing and may tend to think of a snooty galleries and auction blocks. While it is true that these are popular methods, there are other ways to be involved. The best way to enjoy art investing is to find the system that works best for you and ignore what the masses are doing. In this computer-savvy age, it is not necessary that you even leave your house, though some enjoy art investing much more when they be hands on. Everyone has their own style, and you have to find yours.
Many common investments are done over the phone or the internet. These are perfectly fine methods for art investing as long as you know what you are purchasing. Bidding via phone or internet at a Sotheby's auction is a lot different than using Ebay. It is always important to know your source in this case and to be sure that they are trustworthy with a positive reputation in the art community.
Absentee bidding or internet auction sites should only be used if you already know a great deal about the piece you are investing in. Art investing can be a tricky business and there are dishonest people out there. It is not recommended that you make large art investments via the internet, at auction websites or with private sellers unless it is clear what you are getting. If you spend thousands of dollars on a painting only to have it arrive and turn out to be a reprint, you will want to be able to talk to a person face to face and have the situation rectified.
However, many high end auction houses make good locations for your art investing. If you are absentee bidding, you may be assigned a representative that will bid for you while you wait on the phone or in front of your computer. Art investing with this method is often much safer because you will be informed of the items before hand and will know exactly what you are purchasing. These establishments also have long, distinguished histories and are not likely to deal with frauds or counterfeits.
For many connoisseurs, art investing is more about art and less about investing. They tend to invest in art that excites them and that they want to be surrounded by. For these investors, art galleries may be the preferred method. They tend to invest more in items they find aesthetically pleasing and pay less attention to price or potential return on investment. In an art gallery, a potential investor can peruse each collection at their own pace before deciding which one is right for them.
Another reason art galleries are good resources for art investing is that, unlike high end auction houses, you will find lesser known artists and pieces. Auctions are generally geared toward the truly valuable items, often in excess of several millions of dollars. If your budget does not allow for this extravagance, a gallery will allow you to discover newer artwork and invest less money to start out with. You still have the potential to make a profit art investing from galleries if an artist gains more attention from the art community. After all, Monet wasn't always famous.
An art dealer can be like a personal shopper or a stock broker for your art investing. They will help find those investments that fit your taste, lifestyle and budget. For a newcomer, a dealer can make art investing less intimidating and a lot easier. They can also help you sell your investment when the time comes, which is often a daunting task for an art investor.
A less common method of art investing is typically for the "hands-off" investor that is simply seeking to get a return on their investment. Art mutual funds, just like their financial counterparts, gather capital from several investors for the purpose of purchasing one or a few very valuable pieces. Upon sale of the asset, each investor shares their portion of the profits. This offers a certain level of protection as many mutual funds guarantee at least returning your principle.
No matter what your method is, art investing can be a valuable venture. Whether you choose to shop in person, bid on pieces at auctions, buy over the phone or over the internet, the most important thing is to use the method or methods that work best for you. Evaluate your purposes for art investing, your goals with regard to return on investment, and your personal lifestyle and make investments in whatever way suits you.
