To most people, art is just something to hang on the walls. But artworks can be extremely expensive, and increase in value a lot over time, meaning art can potentially be big business. If you’re looking to diversify your investments, then art is one thing you might not have considered investing in. It can certainly make some people a lot of money, but is it right for you?
Some dealers specialise in investment art
Art dealers aren’t just interested in choosing the most beautiful works of art, many of them also specialise in helping people buy investment pieces. Lyons art gallery is a good place to start if you have money to invest and want to put it in art. Investing in art isn’t just about buying paintings and putting them in storage. There are lots of options such as art leasing, meaning there’s an option for everyone.
Art investment still comes with a risk
Investing is tricky business. Yes, it can make you a lot of money, and more than you’d get from simply saving, but every investment carries a risk. It’s important to know the basics of investing before you hand over any money, and you shouldn’t invest money you can’t afford to lose.
It may seem like all art goes up in value, but that’s not necessarily the case. Art can go out of fashion, become controversial, or simply fade into obscurity. An artist dying doesn’t mean your specific artwork will appreciate either. That’s why it’s so important to get advice from art investment specialists, as they’ll know the kind of works that sell and what tends to stay in fashion over time.
When you pick a work of art, you should:
- Pick something timeless that’s unlikely to look dated in a few years
- Choose art you love – nobody wants to invest in art that they wouldn’t personally buy. Trust your gut
- Look for early, significant artworks, as they’re usually the most sought-after
There are no certainties when it comes to art investments, but there are certainly some investments that are wiser than others. So, it’s important to know the difference.
Factor in the tax costs
While you may have worked out you can make a tidy profit from your artwork, unfortunately, you’ll have to factor in costs such as the amount of taxes on investments. Taxes are annoying, but part of the investing game, and if you’re planning on making a significant profit, it’s worth working with an accountant who specialises in investment taxes, so you don’t overpay.
Art isn’t just pretty. It can also be a great investment if you put your money in the right places. However, art investments can be tricky, as there are a number of factors at play that determine whether you’re going to make your money back and turn a profit. That’s why, as with any investment, you should do your homework and get expert advice before you pay any money, as this will help protect your hard-earned cash when you invest it.