Buying art is a great way to support artists and put a unique stamp on your home’s interior decor. But it can be so much more. It can be a good investment that adds to your net worth and provides diversification while providing actual value to your estate for you and future generations.
However, buying art can sometimes be intimidating, especially for novice collectors. Even for art collectors on a budget, there are plenty of places to find and invest in pieces of art.
Where to buy art
There are plenty of different venues to find art for purchase. Of course, most people make a purchase based on what they like. For others purchasing art as an investment, the choice includes finding art that will grow in value. Here's where to begin.
Art galleries
Art galleries are one of the traditional venues where art collectors peruse and purchase new art. Whether you travel to art-centric towns bursting with galleries, like New York or Santa Fe, or just head down to a local gallery in your hometown, galleries always have new work available.
Art fairs
Local artists and creators often display their works at art fairs for purchase. Art fairs and art markets can range from small, local art fairs featuring emerging artists to prestigious and world-renowned art fairs like Art Basel Miami, the Armory Show, and FIAC.
Art auctions
Art auctions are another place where art collectors can purchase fine art. If you’re inexperienced with art auctions, you may want to work with an art advisor or buyer who will help you navigate the process in exchange for a fee.
Art auction houses are often reserved for higher-ticket items coveted by experienced collectors. However, there is more affordable art to bid on, particularly at night's end. You can also participate in online auctions run by organizations like Sotheby's.
Student shows
If you want to get in on the ground floor of the careers of the best young artists at affordable prices, student art shows are one of the best ways to do so. Art schools typically host student shows at the end of the semester. There's plenty of great art to choose from at famous art MFA programs. This is the equivalent of penny stock investing in something you believe will grow.
Online
It is possible to find high-quality, original artworks for sale by both emerging and established artists all over the internet, from limited edition prints to masterworks of contemporary art and everything in between. Some online marketplaces places to look for art online include:
Etsy
Society6
RedBubble
Saatchi Art
Zatista
Artspace
Artsy
There is also digital art available online that is considered a non-fungible token (NFT). This new medium made recent headlines when Christie's auctioned two pieces of Beeple works."2020 Everydays" sold for $3.5 million in December 2020, and "Everdays: The First 5000 Days" sold for nearly $70 million in February 2021. Of course, there is plenty of cryptocurrency pieces available at affordable prices that could add to your investment portfolio.
Directly from artists
Perhaps the most apparent means of buying art is directly from an artist. Whether you know them in real life or follow their career from afar, you may want to contact them to see if you can purchase their art directly. Some artists also sell art to customers now on platforms like Etsy, Instagram, and their websites.
What to consider when purchasing art
Purchasing art is figuring out what works speak to you, but there is a little more to consider when purchasing art as an investment. Because of this, personal preference and artistic sensibility play a considerable role when picking out art pieces—but practical considerations also play a role. Here are a few things to consider when selecting your next piece of artwork.
Your budget
First and foremost, you should look for art that fits your budget. There’s no one-size-fits-all approach to budgeting for art; for some collectors, art purchases make up a sizable portion of their disposable income, while others want to decorate their living room without breaking the bank.
Before shopping for art, it’s a good idea to be realistic about your budget and how much you can afford. Also, keep in mind that the price range for works of art can be flexible—in some cases, you may be able to secure a small discount on a work if it’s slightly out of budget.
The artist
Of course, the person who has created the work is very important. Sure, you know an Andy Warhol piece is a blue-chip investment, but understanding the art world and determining the value of emerging artists is essential. Look to up-and-coming artists who have renowned museums and art galleries' support (and even funding). Look for reviews of the artist in art magazines and with collectors. Consider an artist like a company and the piece like a stock. Research the artist as you would a company before you invest.
Limited editions
Artists will create several editions if purchasing works that are replicated, such as prints or photography. How many are made will affect the value. If an artist only provides 50 pieces, documented and signed, versus 1,000 pieces, the limited editions will have a higher value.
Where to store your art collection
While some want to buy and display a few pieces in their homes, maintaining art is crucial to value. It must be kept safe from moisture and anything damaging the piece. Remember, art is appreciated and could take decades to receive considerable value. How you preserve it for those decades is essential.
Another way to purchase high-valued art outside an art dealer is at auction through new online platforms. Like robo-advisors offering fractional stock market investments, members on art investment platforms can own a fraction of a high-priced piece of work, such as a Picasso or a Monet.
Masterworks
The first platform created to help investors get into art investing,
Masterworks allows unaccredited buyers to buy into works with shares starting at $20. However, it does require a minimum $15,000 investment. Providing ample research on artists and the pieces, this is a worthy brokerage and trading platform excellent for new art investors. Remember, the company holds its investments for at least 5 years, so you'll need to keep your money invested longer.
Otis
Similarly, Otis provides art investments NFTs, and collectibles like trading cards and comic books. Available for accredited and non-accredited investors, Otis allows you to view, purchase, trade, and store your collections on its mobile app. It does not have a minimum investment to join.
Yieldstreet
Yieldstreet is a trading platform for investing in alternative investments. This includes art as well as real estate investments. Members can start with $10,00, with some products requiring a minimum of $15,000. It offers both long-term investment and short-term investment opportunities for passive income.
Pros and cons of investing in art
Can be expensive
Can be challenging to understand the art world
As a long-term investment, it is not liquid
No guarantee of increased value
The bottom line
Buying art is a great way to put your unique stamp on your home’s furnishings and build your net worth by investing in pieces hanging on your walls for years to come.
