Buying Paintings For An Investment
If you are purely buying for investment purposes, like any investment there are going to be certain factors associated with it. Some basic considerations to take into account are:
- How much money do you want to spend?
- What level of risk are you comfortable with?
- Are you after a short or long term investment?
Having decided this, the next step is to ask yourself if there are any artists in your price range that you like. If there are, this makes life a lot easier for you. Then it’s all about research.
Check out each of your favourite artists and look at their sales and exhibition records. Here are some more questions you might ask-
- Are they continuing to increase sales at a steady rate?
- Do they have regular exhibitions?
- Are the prices for the work increasing?
- Do they have gallery representation, online and off?
- What prospects do their galleries foresee for their future success? Is there a trend?
- Are they considered to be ‘collectible’?
- What is a possible likely return on your investment in the next 2, 5, 10 years?
Artists who are already selling well are more likely to be a less risky investment, but of course they will come with a higher price tag. However if you are able to begin collecting the work of a promising emerging artist it is possible to make a lot of money, by collecting their works over a period of years. Of course it is a gamble.
The other thing to do, if you are thinking of collecting someone’s work is to get in touch with the artist. Talk to them, show an interest, let them know how much you appreciate their work. Most artists will be only too happy to share their plans with you. Get a feel for whether you think they are going to be a long distance player or just a flash in the pan. This is really important.