Cornwater Fine Art Gallery - Specialist dealers to the trade and retail in original paintings and signed prints by L.S. Lowry, David Shepherd and Russell Flint.

The Benefits And Risks Of Making An Art Investment

An art investment can turn out to be a more satisfying venture than other investrments because art consists of attractive tangible materials that are made solely to improve the quality of life. However, buying art comes with many risks much like the ones that come with bond and stock purchases. Also, investors are more liable for investments because there are fewer rules in the art industry compared to the financial industry.

Art buyers have to do sufficient research before they buy so they do not buy fake pieces. They should be aware that some pieces will have forged signatures or be fake copies that are promoted as original pieces. People who want to buy their art from an public sale can look at the Better Business Bureau reviews or contact other buyers.

Buyers should make a list of artists they like and view the work carefully. They should request information from the gallery owners about viable investments and talk to different artists. Establishing credentials is a significant part of investing so asking questions is highly recommended. A good investment is made in an artist who's work seems to be moving up in the art world.

The philosophy of buying low and selling high is relevant to investment in artistic works, just as it is for stock purchases. One method to achieve this task is to invest in the work of an artist who is little known but could become more recognized with collectors. Nevertheless, predicting an artist's future can be as difficult as predicting potential stock returns. One way to make a cost-effective investment at first is to buy an artist's signed limited edition prints and photos of their sculptures and paintings.

A range of costs will affect the profits that buyers could earn on their investments. Certain fees are made by auction houses that require the money to arrange and promote their auctions. Some fees can cost as much as 25 percent of the article's cost. People who buy bulky or delicate artwork may have to pay a professional to move it so it does not become damaged. Buyers should insure their art collections so they do not lose their investments due to a fire or other mishap.

Art investments increase and decrease in value much as stocks do. Popular artists have had to deal with unexpected changes in value of their work as well. For instance, late pieces by Monet were not as valuable at a certain period when the artist was having vision problems. Buyers should know that the transforming tastes in society can result in a sharp spike or drop.

Numerous factors can influence the risks of making art purchases. Investing in artists who have cut back in producing art or who are dead is less risky than investing in those who are still alive. That is because the artistic inventory is already laid out (but not completely so, because new works can often come to light).

Making an art investment is a risky business. Methods to reduce the risk include researching the gallery's reputation and paying a professional to research a work's provenance and determine its marketability. Collectors, dealers can all make mistakes and waste important funds on work that they think is investment material. However, art investment returns can make high profits and bring more benefits than risks.


David Tatham has been working in the world of fine arts for over many years and his website http://www.davidshepherd.com contains a wealth of information, also hundreds signed, limited edition prints and original works of art by world renowned artists, for example the conservationist and wildlife artist, David Shepherd.

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