A well thought out investment portfolio is one that is diverse and is built for long-term wealth. You do the research and weigh out the pros and cons of each potential investment. Above all, you must consider your risk tolerance to make the best decision for you. A good investment portfolio also has a variety of investments that keep everything balanced. For example, art would be considered a great asset for a diverse investment portfolio. Maybe you should ask yourself, is art a good investment for you?
Art as an investment type is definitely worth considering. For many, art is more than simply purchasing a painting and hanging it on the wall. Instead, the piece of art hanging on their wall could be growing in value every day until they sell it for a profit.
The latest report on the art industry from 2017 (the newest report is set to release in October of 2019), predicts that the total of art investments in the United States will hit $2.7 trillion by 2026. More and more portfolio managers are having their clients ask for help in understanding the world of art investments.
Does this mean that you should add art to your investment portfolio? It’s more possible than ever through MasterWorks and other companies that allow you to buy shares in a masterpiece as an investment. If you are wondering, “is art a good investment for you?”, take a look at some things you could consider before making the investment.
Is Art A Good Investment For You?
Have you ever thought if art would be a good asset to your portfolio? Well, if you ever thought, “is art a good investment for me”, you are in the right place to look for an answer. As with all other investments, it comes down to a few questions that you should ask yourself, and a few points worth considering.
What Type of Art Would You Like to Invest In?
You can answer the question, “Is art a good investment?” if you first determine what type of art is really out there. There are multiple kinds of art that you can invest in.
Different types of art include:
You’ll first want to decide on the type of art you’re interested in. Your decision can go even deeper – oil or acrylic paintings, large or small sculptures, molded/carved/assembled or cast-based artifacts? Depending on what type of art you start to dig into, your decision can get even deeper than that. Similarly, it can make your investment that much more gratifying.
First of all, you should spend some time thinking about the type of art to invest in. Finally, you should also consider the era you’re most interested in. Do you want to go for the classics that will likely cost a bit more in your initial investment? Or, are you looking for an up and coming artist?
Have a Basic Understanding of Art
To invest in art, you should have a basic understanding of the field. You won’t be able to accurately answer the question, “is art a good investment for you” if you don’t understand art itself. It can be helpful to have a bit of knowledge in the art field. You don’t need to be an artist or have a degree in fine arts. This can help you make a smart decision as to what you’re planning to invest in.
One of the easiest ways to gain knowledge in this field is by visiting:
- art galleries
They are full of history and information on classic and new artists. Many artists have blogs to showcase their work. They can also offer information on what and why they created what they did.
How Much Do You Want to Invest?
Along with deciding on what you want to invest in, you need to decide how much you want to invest. Art pieces can get expensive very quickly. Even if you’re simply buying shares and not the entire piece. That is why it is important to know what you want to invest in because the prices will vary depending on the art.
Art Is Not a Stock, But It Can Be a Good Investment
The stock market is not as subjective as the art industry. Art is different from stocks. This is an important point to remember when investing money in this industry. Hence, it shouldn’t be treated the same way as a stock.
Understanding this concept will come in handy if you want to figure out is art a good investment to make. With art, the price varies depending on who and how many want to pay for it.
Other factors, which include:
- the artist and his or her popularity level
- the quality of the work
- the condition of the piece
- the technique used
It can all contribute to the value of the artwork.
Related: 25+ Passive Income Ideas
Is Art a Good Investment For You? Think About It
You may have been thinking is art a good investment recently. Well, it is for some. Due to this, be sure to consider these points to make the most informed decision. You may want to talk with your financial advisor to see if this option is the best fit for you. Remember, every investment option is not meant for everyone.
Have you determined whether or not art is the best investment option for you?
AUTHOR LaTia Longuemire
My name is LaTia Longuemire. I enjoy writing, singing, and cooking in my spare time. My passion is helping others. At this stage in my lifetime, I'm primarily focused on my children. They are everything that keeps my world spinning.