Art is an investment
Cutting out all the nonsense and apart from making sure that you of course have plenty of enjoyment from your piece of artwork, the most important thing about buying art as an investment is that you want to buy yourself something that is not going to lose you money.
So many items that you buy nowadays becomes almost worthless as soon as you own them. For instance, as soon as you drive a new car off the forecourt you will lose thousands of pounds. Any items that you buy for the house, such as televisions or white goods become worthless also because ultimately, they do not have a good shelf-life and they are something that you will throw away after say 5 or 6 years because they have been superseded by other newer models since you bought them.
With artwork, however, you can introduce these to your home and you can potentially also make money on them. This is, of course, the aim!
What to get?
The question is; What artwork do you want to get?
Art is a very specialised field and unique to whoever is buying it. You do not use art collectors or dealers to go and buy artwork for you as an investment – you are essentially doing it yourself. Therefore, the key is to buy artwork that you enjoy.
When doing this, you should look at different artists and look at their different styles. Look at what you want to buy and what you want to get involved with. The artworks can be traditional landscapes through to some of the artists that copy the same styles of the old masters. Alternatively, you could opt for quirky and fun paintings which brighten up rooms, which are particularly appealing to younger people. In addition, you could use the trendy pop artists or those who have a growing band of admirers within the celebrity world.
How much to spend?
Only you know how much you want to spend.
If you do not have a huge amount of income available, then artwork might not be something that you wish to get involved with. However, if you have money that you want to use, not only to invest in your home to enjoy each day, but also with the potential to see a financial return (namely if you were to sell those pieces in, say 10, 15 or 20 years’ time, or to pass onto your family to enjoy as an investment and as an item) then set your limit accordingly. You should however stick to your limit.
Invest for years, not months
With any investment, you are not going to make any money within just a few months. There are of course the gamblers on the stock market which we always hear about where they make millions of pounds when something disastrous happens to someone else, but those people never produce anything. Also, they lose money just as much as they win it!
Artwork is like other normal investments, in that you buy it and you need to sit on it over a long period of time to reap the rewards.
I have noticed that the suits from the city now use artwork to make up proportions of portfolios for their clients and these can run into tens of millions of pounds. The amounts that they use of artwork for these portfolios run into around 7% to 8% of the total value.
This is good to know because, whilst I would not necessarily suggest investing in some suit choosing what particular piece of artwork you should be passionate about (because they tend to only be passionate about one thing and that is making money and looking good in the city) it does mean that art has an intrinsic value which will grow over time and this must be the case because the suits do not like losing money. If they say that it is worth it, then naturally everything follows – a bit like coffee and gold!