Contemporary Art Investing Tips

 


Over the past decade, investing in contemporary art has become an increasingly popular way to diversify investment portfolios. With the growing popularity of contemporary art, more investors are trying to navigate this complex market with little to no understanding of the art world.

Contemporary art has appreciated by an average of 9% per year over the past two decades, and it can be a lucrative investment strategy for those who are willing to take a calculated risk. If you are an investor looking to invest in contemporary art, this blog is for you. In this guide, we provide tips and insights for investing in contemporary art, which can help you make informed decisions.

15 Nov 2023


  • Understand the Art Market

    The first step to investing in contemporary art is to understand the art market. The contemporary art market is unlike other markets, as it is unregulated, and the value of art can be incredibly subjective. You must do extensive research and analysis before investing in art, but it can be very rewarding if done correctly. To gain a reasonable amount of knowledge about the market, you should start with getting to know the different types of contemporary art genres, understanding art pricing and trends, and visiting galleries, art fairs, and museums. Educating yourself about the art market will help you identify and evaluate investment opportunities that may come your way.
     


    Buy Art that Resonates with You

    It is essential to invest in art that you love and relate to, rather than buying art solely for its potential financial returns. Contemporary art investment can be a long-term investment, and it is crucial to buy what you believe in. Whether the artwork speaks to you spiritually or aesthetically, it will be much easier to weather the ups and downs of the market if you are passionate about it. Your understanding of and passion for the artwork may also encourage you to hold onto it for an extended period, increasing its value as the years go by.
     


    Hire Art Specialists

    Unless you have a considerable background and knowledge of art history, it's always better to seek professional guidance from art experts, which is particularly important when investing in contemporary art. Art consultants, curators, and specialists are well-equipped with market insights for successful art investments and mitigate the risks involved. They have researched art and artists, and they have a good understanding of the future potential and value of the art you're interested in. Therefore, it is recommended that you hire one or more art professionals before investing in contemporary art.
     


    Be Brave and Take Risks

    Making an investment may seem like a challenging process, especially in the continually evolving and unpredictable world of contemporary art. However, you must remember that taking calculated risks is critical for growth. If you have a general understanding of the art world and the contemporary art market, be brave and consider projects and art pieces that may seem a bit much at first glance. Every artist starts small, and investing in their earlier works could prove to be a deadly strategic move.
     


    Storage and Maintenance

    Once you have invested, transport, storage, and maintenance are essential considerations to keep in mind to ensure the artwork's value is preserved. The quality of the artwork has a significant impact on its value, and therefore, you must ensure the artwork's storage and maintenance. Also, make sure to have all your art pieces insured against natural threats to avoid significant irreversible losses.
     
    In conclusion, investing in contemporary art can be an excellent option for investors looking to diversify their portfolios. By understanding the art market, buying artwork that resonates with you, hiring professional expertise, taking calculated risks, and ensuring art storage and maintenance, you can make informed decisions and build a successful contemporary art portfolio. Remember that investing in art requires a lot of research, knowledge, and patience, and it may take time to see significant returns. However, with careful planning, investing in contemporary art can be a fantastic long-term investment opportunity.

     
  • Discuss Collecting with Our Advisory Discuss Collecting with Our Advisory Discuss Collecting with Our Advisory

    Discuss Collecting with Our Advisory

    From Banksy to Basquiat — extraordinary contemporary and modern artworks by the world's most respected blue-chip, established and emerging artists.

    Speak to an Advisor