When we think of investing our money, we usually think of traditional forms of investment, such as property and stocks and shares. However, you don’t have to stick to these usual methods. In fact, you could make even bigger profits if you put your money in some more unusual forms of investments. For instance, you could always consider investing in the art market.
In order to invest in this market, you simply have to buy a piece of work. The whole idea is that you hold onto it until it will have grown in value so that you make a profit from the sale. However, investing in art isn’t always easy. As long as you follow these next top tips, though, you should find that making a profit becomes possible.
As With Any Other Investment, Always Diversify
The art market can be quite volatile, especially contemporary art. Even though you stand to make some really impressive profits, there is also the chance that your artwork’s value will fluctuate greatly beforehand. One way to ensure that this volatility doesn’t damage your investments too much is to always diversify. So, if you already have some paintings, you might want to buy a couple of works from Peter Lik or similar photographers. That way, if the painting market suffers, your investments will still be propped up by your photographs.
Always Buy The Best You Can Afford
Even though some of an artwork’s value will be based on the reputation of the artist, it’s necessary to remember that you need to take the quality of the work will also affect the overall value. So, it’s best to try to go for an artist’s most well-respected piece. Even though that will mean buying pieces that are at the top-end of your budget, it will certainly be worth it when you see what returns you can make on them.
Beware Of Copies
Of course, one of the main things to watch out for when you are looking to buy new artworks has to be fraudsters. There are lots of people out there who plagiarize famous pieces of art in the hope of selling them as the original. If you end up buying one of these then you will have wasted your investment as the copy will be worthless. So, it’s always worth getting a second opinion on a potential painting to make sure that it is really by who the seller says it’s by.
Invest In Maintenance
If you buy an old piece of art, you might need to pay for its maintenance. If you don’t, it could lose its quality which will bring down its value. In fact, some investors like to buy paintings that are in poor states and then hire an art restorer to bring it back to its original quality. Once that’s done, it will have jumped in value.
So, do you think that you should invest in some artwork next? If you follow all of the tips above, you could make a pretty profit!