I consider myself a pretty savvy investor. I invest avidly in the market as well as in real estate, and I create investment plans for my clients. I have always been interested in investing in art but had no idea how to buy, what to buy, and where to buy.
I recently visited South Africa and stayed with a close friend who is an art enthusiast and her partner who is a successful fine artist. We visited galleries, discussed art, and they gave me the lowdown on investing in fine art.
7 Tips to Shopping Smarter for Art
1) Buy Original
Buy original art if you can, but if this is not possible, only buy prints with limited production. Prints without a limited number of copies don't have any value as they can be reprinted at any time.
2) Choose Studios over Galleries
If you like an artist's work vIsit their studio instead of buying from galleries. Galleries charge artist 50% and upward for every piece sold. You are likely to get a better deal if you work directly with the artist.
3) Make it Personal
When buying work, try to meet the artist and get a pic or a note from them. Art can be more valuable when it tells a story.
4) Buy What you Like
Buy art that you love and want to hang in your home. Appreciation isn't guaranteed so get pieces that you love to look at anyway!
5) Get Involved
Go to art events and get to know some artists, they are in the know on up and coming artists and can give you tips and access.
6) Don't Spend your Last
Buy art with money you are not using. Art is a long term investment and you shouldn't need to sell your pieces to take care of immediate needs.
Just as with your portfolio, your art collection should include art from various artists using different mediums, and perhaps also include some photography to ensure you have a solid chance of your collection appreciating as a whole.
Happy Art Shopping!
Alicia Jegede is the principal CPA and financial planner at New Gen Financial Planning, LLC.
Disclaimer: This article is provided for general information purposes only. Nothing contained in the material constitutes advice, a recommendation for purchase or sale of any security, or investment advisory services. I encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Alicia Jegede. All rights reserved. Read the full Disclaimer