Investing In Art: What NOT to do!!
The one worst presumptions that people looking to invest in the art market make is that a cheap artwork is a good investment. There are two types of art investment “cheap skates” the first being the person that buys an artwork because it is cheap to begin with and the other being the person who buys an artwork because it is discounted. The fact is that if an artwork is cheap or discounted then there must be a reason that it is cheap or discounted. If you are looking for something to hang on your wall as decoration then a cheap or discounted artwork is ok but not if you are looking at an investment.
Think of art investment as you would your other investments. You wouldn’t purchase shares in a dodgy business just because they were cheap and you wouldn’t invest in a poor quality bottle of wine just because it was cheap. Its a fact that the higher quality artworks are much more likely to provide a higher rate of return because when it comes to selling the artwork you have invested in, the higher quality artworks will be more desirable. This means that more people will be interested in buying the work and will be willing to pay a higher price for it which will drive the price up. There is no harm in looking for a bargain but make sure that what you are buying really is a bargain and not just a cheap, poor quality work.
If you are going to invest in art then do yourself a favour and wait until you can afford a good quality work before you make a purchase.
**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.
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