Art Investment Guide: Tips from Expert Consultants

Written by Daisie Team

Published on 11 July 2023 10 min read

Art investing can seem like a complex maze of styles, trends, and artists. But with a little guidance, it can become an exciting journey of discovery and profit. This guide will equip you with tips from expert art investment consultants to help you navigate the art market confidently.

1. Get to Know the Art Market

One of the first steps to become a savvy art investor is understanding the art market. There's a lot to learn, from different art styles to market trends and the artists themselves. Let's break it down a little bit.

Understand Different Art Styles

You don't need to be an art historian, but being familiar with different art styles can give you a leg up. Here's why:

Identifying your preference: You'll start noticing patterns in what you like—maybe it's the bold colors of Fauvism or the dreamy landscapes of Romanticism.
Understanding value: Not all art styles have the same market value. For example, Modern Art, particularly Post-War and Contemporary, tends to command higher prices.
Conversing with confidence: Knowing your art styles will help you communicate more effectively with sellers, buyers, and art investment consultants.

Study Market Trends

Like the stock market, the art market goes through ups and downs. And just as a financial advisor would recommend, it's wise to study these market trends.

Historical trends: Look at how the value of certain types of art has changed over time. For example, the demand for Impressionist art has remained strong for decades.
Current trends: Keep an eye on what's hot right now. Maybe it's street art, or perhaps it's digital art like the recent NFT craze.
Future trends: This is where an art investment consultant can be invaluable. They use their expertise to predict what art will be in demand in the future.

Familiarize Yourself with Artists

Finally, get to know the artists. Understanding their stories can add another layer of appreciation to their work and potentially increase their investment value.

Established artists: Artists like Picasso or Van Gogh have a proven track record in the market. Their works are often considered safer investments.
Emerging artists: Investing in up-and-coming artists can be a riskier, but potentially more rewarding. Look for artists who are getting attention in the art world, such as features in major art publications or exhibitions in respected galleries.
Local artists: Don't forget about the talent in your own backyard. Local artists offer the chance to invest at a lower entry point and you'll be supporting your community's art scene.

2. Budget Your Investment

Art can be an incredible investment, but it's not a game of Monopoly. Real money is involved, and like any investment, it's important to set a budget. Here's some advice from seasoned art investment consultants on budgeting your art investments.

Define Your Budget Limits

Before you start bidding on that Picasso, take a step back and assess your financial situation. Here's how:

Disposable income: Art should be bought with disposable income. It's not wise to dip into essential funds like your child's college fund or your emergency savings.
Set a limit: Decide on a maximum amount you're willing to spend on an individual piece of art. This will prevent you from getting carried away in the heat of an auction.
Overall budget: Just as important is setting an overall budget for your art collection. Remember, it's a marathon, not a sprint!

Plan for Maintenance Costs

Just like a car or a house, artwork requires maintenance. Neglecting this can lead to depreciation, which is a big no-no in art investment. Here's what to consider:

Conservation: Some art, especially older pieces, may require professional conservation. This can prevent damage and maintain the artwork's value.
Storage: Not all art will be displayed all the time. Proper storage is crucial to prevent damage from factors like humidity, light, and pests.
Transportation: Moving art can be expensive, especially for large pieces or when shipping internationally. This is often overlooked but should be factored into your budget.

Consider Insurance

Art can be a significant financial investment, so it makes sense to protect it. Here's why insurance matters:

Protection from damage: Even with the best care, accidents happen. Insurance can cover repair or conservation costs.
Protection from theft: Art theft is a sad reality. If the worst happens, insurance can cover the market value of your artwork.
Peace of mind: Knowing your investment is protected allows you to enjoy your art without constant worry.

Remember, art investment consultants can provide invaluable guidance in these areas, helping you make informed decisions that fit within your budget.

3. Evaluate Artwork

Once you've got your budget set, it's time to start evaluating artwork. But how do you separate the Monets from the muck? That's where art investment consultants come in. Here are some pointers they often suggest:

Assess Artwork Quality

Art quality isn't just about how much you like a piece. It's about craftsmanship, originality, and relevance. Here's how to assess:

Craftsmanship: Look at the technique and skill of the artist. Is the work well-executed?
Originality: An original idea or style can increase an artwork's value. Is the work unique or does it feel derivative?
Relevance: The cultural or historical relevance of an artwork can also affect its value. Does the work reflect or comment on its time?

Verify Authenticity

Authenticity is crucial in the art world. A forgery can be worth a fraction of the original, if anything at all. Here's what to do:

Certificates of Authenticity: This document verifies that an artwork is not a forgery. Always ask for one when making a purchase.
Provenance: This is the history of the artwork, including previous owners and any exhibitions. A well-documented provenance can increase an artwork's value.
Expert Opinion: When in doubt, consult an expert. Art investment consultants, appraisers, or art historians can provide valuable insight.

Estimate Artwork Value

Valuing art isn't an exact science. It's a mixture of research, expertise, and sometimes, intuition. Here's how to get started:

Market Research: Look at how similar works by the same artist have been valued. Auction results, gallery prices, and art market reports can be useful.
Art Investment Consultant: These professionals have a deep understanding of the art market and can help estimate an artwork's value.
Art Appraiser: For high-value pieces, you may want to hire an art appraiser. They can provide a detailed valuation report.

Remember, while evaluating artwork can be complex, it's a vital part of successful art investment. And you don't have to do it alone—art investment consultants are there to help.

4. Buy Art Intelligently

All right, you've done your homework: you've studied the market, set your budget, and learned how to evaluate art. Now, it's time to make a purchase. But how do you buy art intelligently? Let's ask our trusty art investment consultants.

Negotiate Prices

Did you know you can—and should—negotiate prices when buying art? Here's how to go about it:

Do Your Research: Knowing the market value of an artwork can give you a strong bargaining position.
Be Respectful: Remember, negotiation is a two-way process. Respect the artist's work and the gallery's expertise.
Ask for Transparency: Don't be afraid to ask about pricing structure. Understanding what you're paying for can help in negotiations.

Buy from Reputable Sources

Just like you wouldn't buy a car without checking its history, you shouldn't buy art without checking its source. Here's what you need to remember:

Check the Gallery's Reputation: Look for galleries that have been in business for a while and have a good reputation in the art community.
Look for Transparency: Reputable sellers will be transparent about the artwork's provenance and will provide a Certificate of Authenticity.
Get an Art Investment Consultant: They can help verify the reputation of the seller and the authenticity of the artwork.

Attend Art Auctions in New York

Why New York, you ask? It's simple: New York is one of the world's biggest art markets. But if you're new to auctions, here's what you need to know:

Do Your Homework: Research the auction house, the lots up for auction, and their estimated prices.
Set a Budget: It's easy to get carried away in the heat of an auction. Know your limit and stick to it.
Consult with an Art Investment Consultant: They can guide you through the process, help with bidding strategies, and even represent you at the auction.

Buying art intelligently is all about knowledge, patience, and sometimes, a bit of courage. But remember, you've got this—and you've also got art investment consultants to back you up.

5. Manage Your Art Collection

So, you've made your first art purchase. Congratulations! But owning an art piece is just the beginning. Now comes the equally important task of managing your art collection. So, where do we start? Good question. Let's dive into the insights from experienced art investment consultants.

Organize Your Art Works

First things first. You need to set systems in place to keep track of your growing art collection. Here are some pointers:

Create an Inventory: Keep a record of all your artworks, including details like artist, title, medium, size, price, and provenance.
Use a Cataloguing System: You might opt for a simple spreadsheet or use software designed for art collectors. The choice is yours.
Update Regularly: Anytime you buy, sell, loan, or move an artwork, update your inventory.

Maintain Your Art Works

Artworks are not just pretty to look at. They need care and attention. Here's how you can ensure your art stays in top shape:

Consider the Environment: Protect your art from direct sunlight, humidity, and drastic temperature changes.
Handle with Care: Always handle artworks with clean hands, or better yet, with gloves.
Regularly Clean: Dust your artworks regularly. If a piece needs more intensive cleaning, hire a professional conservator.

Insure Your Collection

It's a fact, art is an investment and accidents happen. That's why it's smart to protect your assets. Here's how:

Get a Valuation: An art investment consultant can help determine the current market value of your art.
Take Out Insurance: Look for an insurer who specializes in art and can cover the full value of your collection.
Update Regularly: As the value of your art changes, so should your insurance cover.

Managing an art collection may seem like a lot of work, but it's worth it. After all, your art is not just a collection of pretty things—it's an investment, and it deserves to be treated as such.

6. Plan for the Long Term

Now that you have your art collection organized and maintained, it's time to think ahead. What will happen to your collection in the future? If you're scratching your head, don't worry—planning for the long term can be a daunting task. But with some guidance from art investment consultants, you can easily navigate the path.

Consider Future Market Trends

Art market trends fluctuate, and just like any other investment, it's crucial to keep an eye on potential shifts. Here's how:

Stay Informed: Regularly follow auctions, galleries, and art fairs to understand what's popular and what's not.
Consult Experts: An art investment consultant can provide valuable insights into potential future trends.
Be Flexible: Be prepared to adjust your collection as the market changes.

Think About Estate Planning

Ever thought about what will happen to your art collection after you're gone? Here's how you can ensure your art legacy continues:

Make a Will: Specify who will inherit your collection. This could be a family member, friend, or even a museum.
Consider Taxes: In some states, inheriting art can come with hefty taxes. Plan accordingly to avoid burdening your heirs.
Communicate Your Wishes: Make sure your loved ones are aware of your plans and wishes regarding your art collection.

Plan for Reselling

Someday, you might decide to part with some of your art pieces. Here's how you can prepare for that day:

Keep Provenance: Keep all documentation related to your artworks. This will make reselling easier and can increase the value of your art.
Get an Appraisal: An art investment consultant can help you determine the right time and price to sell your art.
Choose the Right Venue: Different artworks sell better in different venues—be it auctions, galleries, or online platforms.

Planning for the long term might seem overwhelming, but remember—every great art collection started with a single piece. With the right planning, your collection could be the next great art legacy.

7. Seek Professional Help

Whether you're a newbie collector or a seasoned art enthusiast, there's always room for learning and improvement. Seeking help from professionals can not only enhance your art investment skills but also add more value to your collection. Let's dive into how you can do this.

Hire Art Consultants

An art investment consultant can be your best friend on this journey. Here's why:

Expert Advice: They can provide expert insights into the art market, trends, and artists.
Personalized Support: They can guide you in growing your collection based on your personal tastes and budget.
Networking Opportunities: They can introduce you to artists, galleries, and other collectors.

Consult with Art Lawyers

Art law can be tricky, and that's where art lawyers come in. Here's how they can help you:

Legal Guidance: They can provide legal advice on buying, selling, and inheriting art.
Dispute Resolution: If any disputes arise, they can represent you and protect your interests.
Estate Planning: They can assist you with estate planning for your art collection.

Network with Other Collectors

Other collectors can be an invaluable resource. Here's why networking is important:

Shared Experiences: You can learn from their experiences—both successes and mistakes.
Trade Opportunities: You may find opportunities to trade or buy art pieces from fellow collectors.
Support System: They can provide support and encouragement as you build your collection.

Remember, every collector was once a beginner—curious, excited, and perhaps a little overwhelmed. With the right help and guidance, you can navigate the art world with confidence and grow your collection into something truly remarkable.

If you found our Art Investment Guide helpful and are eager to dive deeper into the world of art investments, don't miss the workshop 'How to Invest in Art' by Ciarra K. Walters. This comprehensive workshop will provide you with even more expert advice and strategies to help you make informed decisions and build a successful art investment portfolio.