Fine Art as an Investment

Investing in art is complex. The question is Fine art a good investment is one which should be tackled with the open perspective that what art itself is has yet to truly be defined. This view is to give you some insight into the infinite facets that make up a piece of art’s value. Buying art as an investment is something that, depending on the nature of what you value to be an investment, is a game with only a few winners. It should be approached with the frame of mind that the analysis and the curation of opinions from art critics and master investors is something that can provide you with only a slither of what you think you need to know. Fine art is an asset that is a complete curveball, due to its unpredictable value and the way in which that value emerges from cultural niches that only a few of the most culturally entwined individuals could have seen coming.

Delving into Fine Art research is an essential first step into partaking in the fine art investment world. Investigating what artists are popular in the market can only give you a fraction of what pieces of artwork are worth your investment, but it’s a fraction that can propel you into a whole new world of investing. To find these artists may well be worth your time. The recommended reading to get you started would have to be the book 100 painters of tomorrow.

In some of the latest Fine Art investment news, you can find upcoming auctions that demonstrate the kind of art that has captured the interest of the art and investment community. Bonham’s South African auction to be hosted on September 4th is an example of the kind of artwork that is making an impact on the market with one of the pieces ‘Arab in Black’ estimated to capture £700,000 – £1million. Cross Roads: Wei Dong’s Sotheby’s auction including paintings that capture his recent journeys are another fine example of the type of cross culture art that appears to be trending. You need to immerse yourself into the culture of the fine art world with genuine enthusiasm in the artwork itself or give up immediately and look for some other means to work your money.

A wave of hype has been proposed to be carrying fine art into the forefront of investors’ minds recently. It’s a wave that is being ridden by the work of modern artists and old masters alike, from Damien Hirst to Pablo Picasso. Adam Lindemann exposes that it’s a wave that harnessed its energy from the “Art Advisor”. He surmises that there is a market for fine art resale, but only for the artwork that’s trending, meaning your investment is dependent on the fancies of rich art opinion leaders. Chasing these trends is a fine way to get a temporary increase in your investments capital or potentially ruining yourself. Meaning buying Fine Art as an investment can be profitable if you know what you’re doing. If the artist whose work you enjoy and you’re thinking of buying is out of style, it has been said that the art world turns. Meaning buying out of style work could actually work in your favour, as it could come back into esteem.

What’s a safer course of action? Buying art that you love. Investing in a piece that appeals to you not just as a status symbol and as something that you think will make you money, but more so because it speaks to your soul. That way you’ll have a something that not only could potentially boost your capital, but something that showcases a little of who you are and serves the function of producing happiness for you. Also, as an investor, you should no doubt have instincts that you can trust and if you don’t invest in a piece of art that you view to have value yourself than it’s likely others won’t see that value either. However, as with all assets you need to be fully aware that there is never a guarantee that you’ll asset will grow in value or even hold it.

The fact that fine art has huge sums of money invested into it alone surely demonstrates that it is a type of asset worth the investment and is a category of asset that has stood the test time. It really comes down to the piece of artwork you purchase.

About the Author:

Adam is a freelance writer that focuses on luxury asset trends for Borro Private Finance.