Is Contemporary Art a Good Investment?

When we talk about investing in art the idea is to depend on trends and figures. When you invest in art you combine the emotional and the commercial value. In the art market, there are no rules, and trends are very difficult to predict. Today this is even more difficult because there are more and more young artists out there.

Investing in Contemporary Art

The simplest definition for contemporary art is an art that is produced today by some living artist.

When investing in art there are no limits on what you can achieve, but buying art is risky. Like any other investment, you can lose all your money by doing it. Evaluate the risk before starting to invest in art.  

You don’t need to have a lot of money to start investing in art. Thanks to the internet and social media, especially after the pandemic the art market has become very accessible. We now have more and more new young collectors as investors.

Investing in art can bring you a lot of money. You can find an artist, research their background and start with buying small just to get a feel for the market.

When buying art from artists that are not famous it is important to know pieces of information like whether they are signed by a gallery, reputation, etc. The auction sales records can be a good place for this.

Where to buy it?

Art investments are a lot different than buying stocks. Art is a long-term investment that can pay off with a lot of money. Also, the plus side is that you will enjoy it by looking at it. The “Salvato Mundi” painting by Leonardo da Vinci was sold five years ago for a stunning 450 million dollars.

Today is fairly easy to buy art because there are online and offline options. There are many online sales, galleries, and selling platforms for art. In fact, the last two years, starting Covid-19 were the best ones for the online art market.

With online auctions becoming a trend young investors buy directly from the artists. Some even find their work on social media platforms like Instagram.

Also, there is a new platform called Masterworks that will allow you to invest in artwork and be protected by market fluctuations at the same time. Yield Street is also a digital platform that is worth checking.

If you would like to spend a little bit more money there is another platform called democratizing art investments. On this platform, you join a rich community of people who invest in contemporary art.

There are also still classic options for buying art. Live in-person auctions, galleries are one of the ways to get to know the artists and the prices of their work. In the end, really is a personal choice whether you want to buy in person or online. Some prefer online, while others in-person galleries.

Is it a good idea?

The main goal for most investors is to get rich by investing in young artists. This doesn’t always end up happening. There are good things and bad ones when it comes to investing in contemporary art.

Investing in contemporary art can be a good idea for people that love art and have a passion for it. They are willing to go the extra mile and make deep research about the trends and the artists.

Keep in mind that investing in contemporary art also can be a good investment if you are looking to diversify your portfolio and you are willing to wait for the long term in order to make a profit.

Investing in contemporary art isn’t for you looking for returns that will outrun the stock market, you want to eliminate your holding quickly, or if you simply don’t like art.

Summary

Before start investing in art be sure to always keep up with the latest trends. Have a clear picture of where the art world is going. Visiting galleries from time to time will be a bonus.

In the meantime, always do full research so that you can get to know the artist you are interested in a little bit better. Start small and enjoy your investments.

Also read: How to Dollar-Cost Average in a Bear Market