Fine art investments emerging in the market day to day basis as an alternative investment. Art collectors around the world looking for new opportunities to invest in art and collectables to make huge profit from it. Can you become an art investor? Yes, anyone can be an art investor once if have required knowledge on what is art investing. Here are nine points to successfully invest in art and collectibles and receive huge profit from it.
1 Buy the Best You Can Afford
The best work by artists–great and not-so-great–appreciates in value more than mediocre work by the same artist. The same is true for antiques and collectibles, too. Even in a down market, prices hold-up better for the top examples of any type of object.
2 Buy Items with a Paper TrailA good provenance hikes the value and adds to the resale allure of an object. Two reasons: it testifies that the piece is authentic & it tells a story. People love a story.
The signature doesn’t show when you exhibit the item? Nobody sees the signature on a Cartier brooch or on the back of an abstract painting. For resale value, it must be there.
4 Buy Items in Perfect Condition Everybody knows stories about the huge price spread between mint-in-box toys versus ones that kids actually used. Sure, you can have a piece restored, but it will never be as desirable as something that was never damaged.
5 Keep Items in Perfect Condition Simple attrition is one of the basic reasons antiques have value. Over time, fewer items survive and those that have survived usually deteriorate. Your investment goes up because you take care of it.
6 Buy Small Scale Objects On a dollars/square inch basis, small items trade higher than big ones. This has to do with display logistics: People prefer Amish crib quilts versus full size ones, because you get the idea, and it takes half the space to show it.
Sure, you could buy a Jackson Pollock drawing showing a representational depiction of a reclining nude. When friends walk in the door, they say: “nice nude”. For resale, buy a Pollock dripped painting. Friends’ response: “awesome Pollock!”(Resale market: nice nude=$X0,000; awesome Pollock=$X0,000,000)
Tempting it may be, but whatever is terminally fashionable and on everyone’s tongue this week is probably not a viable long-term investment. (That’s not to say you can’t flip it.) If an object, period or artist you own is all over the mass media, it’s time to think about unloading.
9 Sensitize Yourself to Major Trends Global political and economic shifts are a great clue in trend spotting: In the early 80’s as OPEC’s oil-pricing power declined, prices of oriental rugs took a hit. In the late 80’s the price of Korean antiques skyrocketed as that Tiger economy grew. In the 90’s, the fracturing of the USSR generated good interest in Stalinist memorabilia & other tchotchkas since they marked the Cold War–an era now relegated to the history books. Pick your political or economic scenario and build a portfolio of tangible investments around it.
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