How do you Gain Financially from Investing in Art?

Gaining financially from artwork is the key to any good investment.  Artwork is an extremely good way of investing your money for growth.  Yes – you may be lucky enough to purchase a piece of artwork that can double in, say one or two years’ time, if you are fortunate to get involved and purchase artwork from a particular artist where for some reason, either through fame or infamy their artwork explodes in value.

However, for the mere mortals, you can purchase artwork that does go up in price over a period of time which is why it is such a good investment.  By way of example – let us say that you are looking at investing in property or a vehicle or something else.  With most investment vehicles, you need to maintain them (i.e. make sure they run, make sure they operate well) meaning that there is a cost to look after them.  These costs can be quite high in some circumstances and can involve further investment at the outset to make sure that whatever you bought is looked after.  You might get a cover for a car, but certainly you would need ongoing expenditure to be met through insurance, servicing, tax and so on – all of which mounts up and of course goes against your investment value.

With artwork – yes, you do have to make sure your home contents insurance covers it.  However, most do this up to quite a high value, running into the tens of thousands of pounds, but even if you do have to get a different policy, you are probably looking at another £100 per year that will cover quite a considerable collection.

So, you have bought your piece of art and you have put it on your wall so you can enjoy it.  Your friends, family and anyone who comes around can also enjoy it.  They may not agree that it is good but it might be a talking point!  Either way, you can enjoy your investment on a permanent basis every day.  Most people, if they have bought a nice piece of art, will put it in a prominent position to enjoy it.  If you buy a car, you usually put it in a garage and you do not tend to look at it much.  If you buy a house, what do you do?  Do you let anyone rent it and you begrudgingly go around there when they call to say their boilers broken?

Investment in art also looks at how much can that artwork grow.  If you are buying a piece of artwork for, let us say £500, the most you can lose on that piece of artwork is £500.  You have bought it to enjoy it in the first place anyway, so even if you did not get anything back from it, you have had X number of years and enjoyment in appreciating that piece of artwork.

However, normally with artwork, you will see a growth in its value.  You may not see much growth with some artists, with the average growth over the last 20 years on artwork (with ups and downs) being in the region of 4% to 5%.  However, there are some artists who make an excellent investment and these are the ones that we are looking at focusing on.  We are not focusing on the brand-new artist’s market, where you do not know how their investment value is going to develop, but ones where you have a glimmer that they could do something quite exciting.

We are looking at taking these artists and promoting their works.  We are not taking the initial risk, but taking a view that they will increase in value (because they have been praised or complimented by arts guilds as “up and coming” artists) and we will promote these pieces where we would imagine a growth over, say a 5-year period, of being at least 20% to 30%.  Whilst this is not of course a huge amount, when you compare with the average being 4% to 5% a year, it is only just over and so therefore we like to be conservative when promoting this idea and scheme.

Best UK Artists to Invest in

Again, to promote this scheme properly, we need to look at what we know best and that is the UK artists and what they must offer.

Many of the artists that we do look at, and which we collect personally, have international appeal. This is all well and good when it comes to investment value, but ultimately they are based in the UK meaning that their works produced have a natural feel for ourselves and we believe our clients will also appreciate and enjoy the artwork from these UK based artists.

Some of the artists that we are looking at promoting are quite trendy, where they use modern pop-art skills.  These, in some cases, can be a little bit of “love them or hate them” artists as they are not in the traditional format that artwork has originally been promoted on, namely that of canvas.  Different materials can be used and produced within this type of artwork, from wooden slats through to stencils.  However, these artists are extremely popular and provide fantastically fun artwork, but also with the potential for good financial growth.

Other artists that we look at, admire and can promote are from a more traditional approach to art, such as the use of oil palettes and traditional applications.

One of the key areas that we will look at is we will only promote art pieces where they are original.  Several artists, particularly those which are more successful than others, will produce limited editions.  These limited editions make it more affordable for someone to buy beautiful artwork and enjoy it (but at a fraction of the cost).  However, the greatest investment you are going to see and get a return from is by acquiring artwork which is an original.  It might be that the original artwork is then copied, which of course then adds further financial worth and growth to the person who has the original painting.

We will also be able to offer a service looking at commissioned pieces for individuals.  However, if you are looking at artwork that will increase in value, those pieces that are thought, designed and put onto canvass are from the minds of the artists, and therefore these are likely to be those pieces which have the greatest investment potential.

Commissioned pieces, on the right subject, can also be extremely useful to have in a collection and of course they may well have a greater affection to the purchaser which is one of the main areas of investing in art – the enjoyment of the art itself!