What to Expect When Investing in Art
One of the main reasons people are reluctant to invest in art because they are unaware of what they should expect from an investment in art and how it fits into their current investment strategy. I would never suggest that someone put all their money in art but it has been suggested by financial experts that you should look at 10% to 15% of your investments in art.
Another aspect of that people need to be aware of is that art investment is a medium to long term investment. You should be prepared to hold onto your investment for a minimum of five years but be prepared to sell earlier should something happen that has a dramatic affect on the value of the artwork.
The decision also needs to be made as to whether there is an aesthetic interest as well as an financial interest or purely a financial interest as this can have an impact on the choices you have to make.
Consideration also needs to be given to the amount of risk that you are prepared to take. There is more risk involved with investing in an emerging artist but the rewards may be greater and the risk is less with an established artist but the rewards may be less.
**Nicholas Forrest is an art market analyst, art critic and journalist based in Sydney, Australia. He is the founder of artmarketblog.com, writes the art column for the magazine Antiques and Collectables for Pleasure and Profit and contributes to many other publications.