Investing in Art

by Charlotte Wood
(last updated February 21, 2009)

Investing is a whole other world of finance that's sometimes difficult for the layman to understand. You have to know all about the artists you're interested in, what makes their work unique, what makes it have value and you have to know the trends in the value and trader's opinion. It's all quite overwhelming, but fortunately there are a few basics that if understood can get you started in your art investment adventure.

The basics are simple: You buy a piece of artwork and hope that the value of the work or of the work of your artist in general increases. This increase in value can happen almost immediately or it can take years—that's the uncertainty of investment. Investing in anything, regardless of what the actual hobby or item is, deals greatly with business sense and not so much with actual taste.

If you're a serious investor, you'll probably be more concerned with the business end of it. Like with anything else in economics, art follows the same principles of supply and demand which directly affect its value and therefore your investing sense. If you want to be a hard-core investor, familiarize yourself with the market and know the trends. Investing is more business than anything else and so you'll most definitely need some good economics sense to succeed.

If you're more of a casual investor however you can be more relaxed about the whole business. You can buy what you want and not have to worry so much about the actual worth. Be wary of taxes though because if it's a real "investment" according to the law, you'll basically need to keep in under lock and key to protect its worth.

Another thing to keep in mind as you begin your investing endeavor is to watch out for scams. Become familiar with the scams used and know what makes a work original and what is important when authenticating a work. Know how legitimate auctions function and how the market functions as a whole. The better you know the trade and the market, the better investor you'll become. This takes some research, some observation, and like all things dealing with investing, it will necessitate the willingness to take risks. If you can get a good grasp on what the market is and what it entails and put in some of your own personal flair and risk then at the very least you'll have some art to hang on the walls and some good stories to tell!

Author Bio

Charlotte Wood


Choosing a Great Prom Hairstyle

Prom is one of those nights you look forward to all growing up and you want it to be perfect. You need to pay attention ...

Discover More

Dealing with Hat Hair

Hats are definitely fun to wear but it's never fun to have to deal with the hat hair. Learn how to handle hat hair and ...

Discover More

Hair Straighteners

Hair straighteners have become some of the most used and needed tools in the hair industry. If you're looking for a flat ...

Discover More
More Money Tips

Protecting Your IRA Investments

Remember that IRA investments are for retirement. If you try to tap the funds before retirement age, the IRS will impose ...

Discover More

Rolling Over Your IRA

You should roll over old IRA and 401(k) accounts into new IRA accounts. This will increase the amount of control you have ...

Discover More

What Makes a Good Investment?

Good investments are often hard to figure out; it's hard to decide what's good and what's bad and what will best benefit ...

Discover More

If you would like to add an image to your comment (not an avatar, but an image to help in making the point of your comment), include the characters [{fig}] in your comment text. You’ll be prompted to upload your image when you submit the comment. Maximum image size is 6Mpixels. Images larger than 600px wide or 1000px tall will be reduced. Up to three images may be included in a comment. All images are subject to review. Commenting privileges may be curtailed if inappropriate images are posted.

What is nine more than 2?

There are currently no comments for this tip. (Be the first to leave your comment—just use the simple form above!)