Art investment has been a very common way for many people to own an asset that could mean massive returns over time. Like most things, you have to love it in order to invest your money in it. Any investment, especially in art, made out of love never goes to waste. If you love a piece, it could be worth looking into buying it not only to decorate the walls of your home but also as a form of a non-liquid asset. There are several reasons why art has always been and still is one of the best and wisest forms of investments. Here's why:
1. You are investing in more than just a piece of art
You may or may not have ever thought of it from this perspective, but when you invest in art, you are actually investing in an artist. Your investment gives the artist the sources and encouragement to continue making more art. You are investing in a dream and in return, you get to keep a part of that dream. You are adding someone else's vision, their story and their passion to your own world. You are investing in the artist's greatest passion, hours and hours of practice, their victories, struggles and disappointments. Your interest in an artwork, gives the artist the courage to part with something they have put their heart and soul in.
2. Art investment is a relatively low risk investment
Now let's get a little technical here for a second, unlike other commodities, the value of an artwork does not fluctuate with the market conditions or during an economic downturn. Additionally, you only pay a one-off price for the art without any strings attached such as rising interest rates or rise and fall in the stock market etc.
As long as you love a piece of art and are buying from a genuine artist, art is a relatively low risk investment. In a worst case scenario, even if you don't make millions of pounds out of a piece, at least you have something you love and can show off on your walls.
3. You can feel proud to label yourself as an Art CollectorBeing a full-time or a part-time art collector is a skill worth having. Once you start to follow an artist and invest in their work, you profit from it as much as they do. It is usually a win-win situation. You get to learn something new and at the same time put your money in the right place. Moreover, you can put down another fancy skill on your CV and be proud of it.
4. It is a good use of your spare cash lying in the bank
If you have a lot (or a little) extra cash lying around in your bank account, then investing in art would probably be one of the best ways you can put that money to work. Invest that money in an artwork that fascinates you or speaks to your heart and start personalising your space.
Remember, you don't have to invest a lump-sum. It doesn't always need to be a large or a highly priced piece. As long you like it, you can start investing by purchasing what you can afford right now.
5. It might take a little time and patience
Lastly, if you are looking to collect an art piece on a regular basis, just remember that like most great things it may take a little time and patience to see substantial ROI on some of the works, especially if you are investing in emerging artists. You may have purchased something back in 2007 and realise in 2014 that the value of the piece has suddenly gone up 200% but it took 7 years for that to happen. So, you need to be patient and learn to love the piece and take care of it whilst it is with you. You may never want to sell some of the artworks just because you have grown to love them and they become a part of your home.
I know that when it comes to investing in art, some people criticise this approach and argue that there is a lot more to buying art than simply doing it out of love. But, I strongly feel that although there will always be all these technical tid-bits in whatever you do these days, but anything done in love rarely ever goes to waste. Therefore, as much as logic is a beautiful thing to rely on, with art you have to use your instincts.
If you invest wisely and are lucky enough to find something that grabs your attention and leaves an impression in your mind, your art investment might just be one of the best and the most profitable financial investments you would gave ever made. Lastly, there is a process behind the finished piece and usually an interesting story and if you're lucky, you get to keep the finished version of that story. Don't forget to ask the artist what that story is, it will just make things a little more interesting and personal. Enjoy being an art lover, it is one of the most rewarding things to spend your time and money on.