Art can do more in life than brighten up a corner of our house or doll-up the walls. In the recent years, the art market has become one of the hottest investment crazes amongst investors. Buying art, sculpture and other works can make the investment portfolio of an individual much diverse and lucrative.
Doing the research
Like any other investment, it is important to run a background check regarding the background of the artwork, history and works of the artist. Like any other investment variables, artworks too are subject to a number of factors, which determine the loss or profit factor from the investment.
Knowing the history of an artwork will help an individual determine a better price and valuation of the piece in the market.
Provenance of the artwork
Since collecting Art is a valid investment, which ultimately trickles down to the valuation of the piece, the provenance of the artwork is an important factor. The documentation of an artwork’s history, ownership history, accolades, sales price history, condition of the piece, life and work of the artist provides authentication to the piece and makes it more prone to secure a long-term valuation of the piece.
Having a well thought-out strategy
With so many moving parts in the procedure of investing in art, it is often easy to confuse the course of action to make a successful investment. Having a well thought-out strategy can help us move out of this coup. A successful art investment strategy should include:
- Research and documentation about/of the provenance of the artwork
- Relationship and interaction with other professionals
- A thought out and defined budget
- An understanding of the art market
Understanding the investment
Loving the artwork is the first criteria before investing in the artwork. Yet,that is not enough.
Acquiring art requires more presence in exhibitions as the more you see, the more you learn about the valuation, the price and the other factors which determine art as a successful investment.
