Why You Should Consider Investing In Art

When we hear the word ‘investment’, most of us tend to think of the corporate world; stocks and shares, fluctuating markets, and business equity. If you like the idea of being smart with your money, but find yourself drawn more to things that are visual, tangible, and dynamic, you may want to consider turning to the art world instead. Indeed, a collection of art can be just as financially tenable – and arguably far more interesting – than more traditional investment opportunities.  

And so, if you’re at all tempted to dip your toe into the vibrant, exciting world of art investment, here are a few benefits that may persuade you to finally take the plunge. 

It’s a physical asset 

Unlike stocks and shares, art gives you the opportunity to actually see, interact with, and appreciate your investments up close, transcending simple financial gain. Whether filling your home with carefully curated pieces that will hopefully pay dividends in the future, putting together exhibitions so you can show off your collection (and bring in further cash), or housing your pieces in galleries so you can visit them whenever you want whilst sharing them with others, there are many different ways to enjoy the art you’ve invested in. 

It’s not as volatile as other investment types 

Stylistic trends within the art world do come and go, and are worth keeping an eye on, but individual pieces aren’t particularly subject to sudden market changes when compared with the likes of gold or stocks and shares. There’s no threat of businesses going bust, and as a general rule of thumb, a piece of art stands only to accrue further value over time – slowly but steadily – making it great for those who favour a long-term investment plan. 

It’s more achievable than you think 

In certain circles, the art world has an unfair reputation for being exclusionary or elitist, but art is for everyone. Prior interest or experience will of course help you to make wise investment choices, but you don’t necessarily have to be an expert. On the contrary, a good eye and plenty of research can take you a long way with any investment type, especially art. 

There’s also lots of help out there if you’re mostly interested in the financial side of things. Masterworks.io, for example, are a fully qualified and completely transparent fine art investment platform with an ever-growing portfolio. In a nutshell, they source paintings, you buy shares in them, and they give you the relevant proceeds once the works are sold. This is a great option if you want to invest in some big-ticket pieces but can’t afford to purchase them outright, if you want the confidence of third-party involvement, or if you don’t have the means to house a collection yourself. 

You’re investing in something you love 

A typical portfolio, whilst still undeniably worthwhile, will often lack a personal touch. With art, you can invest exclusively in pieces you genuinely love, making the formation of your collection a passion project as much as it is an investment in your financial future. Regularly attending auctions and sales is also a great way of meeting likeminded enthusiasts, collectors, and art lovers, forging connections that can lead not only to further lucrative deals, but genuine friendships too. 

Disclaimer: The posts I write and share is purely for informational and entertainment purposes and I am not, nor claim to be a financial expert of any kind. Please make your own decisions on ...

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Marcy Brown 4 years ago Member's comment

One of the basic tenets of investing (not trading) is to believe in your purchase and then hold onto it for a long time. If you are buying art purely as a speculative investment then you'd better really know your stuff or really trust your art-investment advisor. Otherwise, buy what you love and want to look at, and if it appreciates, it's a bonus.

Wendell Brown 4 years ago Member's comment

Yeah I think this is probably sponsored by Masterworks which is the only info source mentioned.

James Hanshaw 4 years ago Contributor's comment

Where are the comments on this article?

Terrence Howard 4 years ago Member's comment

I guess yours can be the first! What kind of comments did you expect?

James Hanshaw 4 years ago Contributor's comment

A conversation on art and art investing - people sharing knowledge

Bindi Dhaduk 4 years ago Member's comment

I would say that the problem with investing in art is that it's not something that is easily accessible to the masses. To invest in stocks you only need a few dollars to get started. Valuable art work is out of the price range of most.

James Hanshaw 4 years ago Contributor's comment

That maybe the case with lots of art but some stocks are pricy too. you can buy some nice pieces of art for the price of one Lindt & Sprüngli voting share at around $90,000 each, LISN on the Zürich exchange. Berkshire Hathaway shares, BRK.A, would buy some ok pieces of art too at around $272,000 each.

I am an artist and if you come my way - I live in Zürich - I will do a drawing of you for slightly less! James

Bindi Dhaduk 4 years ago Member's comment

Thanks James, I see the link to your site from your profile page. I will check it out. But what are the odds your art will appreciate in value?

Bindi Dhaduk 4 years ago Member's comment

You are very talented. But tell me, do you only paint female nudes??

James Hanshaw 4 years ago Contributor's comment

Thank you for the compliment. I do not expect a great deal of appreciation for my art but a local expert told me just yesterday she thinks it could do quite well at an exhibition later this year. I do nudes and/or head and shoulder pictures, to suit the wishes of the subject. Bye. James

https://naturalelegance.ch/

James Hanshaw 4 years ago Contributor's comment

Bindi, My email address is jbhanshaw@gmail.com James