Investing in Art: An Interesting Investment Trend to Watch Out For

1. Investing in Art: An Interesting Investment Trend to Watch Out For

2. Introduction • While discussing about investments and trading, most individuals often cover asset classes such as stocks, bonds and mutual funds, which are the most popular choices in the equity market. However, there is always a scope for innovation in every domain, and investment is no different. That is why many alternative investment avenues have now emerged, enabling investors and traders to think beyond their comfort zones. One such interesting and upcoming trend is investment in art. What is art investment all about, why should we care, and how should one go about with it? Let’s take a look:

3. What is Art Investment All About? • As the term suggests, art investment is all about purchasing and selling pieces of art to derive profits in the process. • Connoisseurs of art often visit various art exhibitions and galleries, exploring artworks from different eras and by several artists. As a result, they not only have an interesting personal collection of paintings but also a sound knowledge of art as a domain. • Over time, they also attain a fair idea about which genres of art are more in demand and which ones are likely to make their way into the hardcore commercial zone. This understanding makes art investment a profitable venture for such individuals.

4. Thus, instead of trading on equity and other conventional asset classes and derivatives, they may choose to purchase paintings for which they perceive a high commercial potential. They may then time the market and sell the painting at a higher cost when its demand begins to surge, thus making profits in the process. • As an alternative investment technique, art investment is an interesting means to earn good profits while also trying an out-of-the-box strategy.

5. Some Tips for a Successful Art Investment Venture So, what are some aspects you should remember while venturing into art investments? Here’s a look: • Study Art and its Genres: Before taking up art as an investment, take it up as a study. Explore the different genres of the subject, and analyse the trends and patterns of their popularity among the masses. This will also enable one to gain a clear understanding of what types of paintings are likely to garner attention from the public in the near future. Accordingly, the art investor may purchase one or more of these paintings and sell them to make profits at the right time.

6. Research on the Artworks by Specific Artists: There are hundreds of unsung artists out there, and it often takes time for these individuals to receive their due recognition in the world of art. As an art enthusiast and investor, you could start by evaluating and studying specific artists and their artworks instead of paintings in general. This can help you earmark promising artists with great potential and purchase their artworks at the current market price. Later, when their artworks begin to get recognized by the masses, the painting you purchased could earn you significant profits.

7. Be Sure About the Art Dealer: While making your art investment plans, it is extremely important to ensure that you purchase the artwork from a reliable source. Make sure to find out more about the art dealer or broker from whom you are planning to purchase the work of art. Check out his/her previous art dealings, read online reviews and testimonials, and coordinate with fellow art enthusiasts to verify his/her credibility.

8. Think About Buying and Selling the Artwork Online: Today, almost every transaction and exchange takes place in the online world, where people from different corners of the world can unite seamlessly. While buying paintings, explore your online avenues and consider the wide range of options provided to you. This is a rather convenient way to gain access to a plethora of genres from the comfort of your home. Similarly, even when you plan to sell your painting, look for online buyers who are bidding at lucrative amounts. It always helps to have the online as well as offline avenues open.

9. Conclusion • Although investing in art is a fairly novel investment strategy, it is rapidly gaining momentum among connoisseurs of art. In fact, many stock brokers and investment advisors are also recommending alternative investment methods as great ideas to diversify one’s investment portfolio. We would be glad to help you explore such exciting and unconventional investment and trading avenues and earn significant profits as you proceed.