What is fine art, and why do people invest in art? These are some of the most common questions regarding art as an asset. But art is far more than just fine, and it holds a considerable amount of value, considering how many people question the reasons to invest in art.
Art encompasses a wide range of styles, mediums, and categories, making it a compelling avenue for investment. If you’re a beginner looking to dip your toes into the art investment world, House of Assets is here as a guide to walk you through the basics of the varying types of art and what to know about how to invest in art.Â
What is Art?
Understanding the diverse categories within the art world is the first step in your journey as an art investor, as there is more than just ‘fine art’.
The more traditional forms of paintings, including oil, watercolour, acrylic, and more, are considered fine art. Other art categories to keep your eyes out for are sculptures, photography, and prints, although they are not as seemingly prevalent in the investment world. Alongside that, there is also contemporary art, which is again as vastly popular as fine art. The difference is that where fine art is more for historical art, the contemporary art category is ever-evolving and encompasses various mediums and styles, reflecting the trends, ideas, and social dynamics of the present moment. So, depending on how long you want to hold onto your asset for, and we’re talking generations, then contemporary art could have the power to be a historical art piece!
How to invest in Art?
At House of Assets, we understand that most people know why art is a good investment, but we also appreciate how daunting it can be to invest in your first piece. So we want to provide you with a basic beginner’s guide to investing in art with House of Assets’ top tips!
- Research – Before diving into the art investment, educate yourself about the art world and know what you’re letting yourself in for.
- Set a budget – Determine how much you’re willing to invest in art and try not to over-extend yourself, as art is not a liquid asset.
- Authenticity – Ensure the artwork’s authenticity and verify its provenance by consulting experts and relying on trusted sources to confirm the legitimacy of the piece.
- Conservation – Prepare yourself for the conservation and maintenance costs. Ensure you have a suitable place to store and an operation in place; otherwise, you run the risk of your art depreciating if the condition decreases.
- Market Trends – Keep an eye on the market trends and the performance of artists and categories you’re interested in.
- Build Relationships – Establish connections with galleries, art dealers, and other collectors. Networking can provide insights and opportunities to collaborate, especially with the House of Assets collaboration feature.
- Legal Matters – Familiarise yourself with tax laws, insurance and regulations related to your art investment.
Art investment can be a rewarding journey for those who appreciate and understand why art is a good investment for its aesthetic, cultural value, and potential financial returns. As a beginner, take your time to explore the diverse world of art, learn the ropes, and make informed decisions. If you’re struggling to find where to find the best art online, then House of Assets is your answer for 2024! House of Assets are happy to help with any art investment queries or any questions about our services, so don’t hesitate to get in contact.