How to buy a painting for investment
Buying paintings by contemporary artists, even little-known ones, can often be associated with significant spending of money. Therefore, it is important to talk about the profitability and justification of such expenses. You must understand what you are paying for and why.
A lot of ” why ” when buying
If you are an investor and want not just to buy a beautiful thing, but also to invest money profitably, it is important to understand the answers to very simple questions:
Why can investing in contemporary art be profitable?
Why can the purchase of paintings by modern artists bring profit, and sometimes a very large profit?
Why is collecting works by contemporary artists primarily a profitable business?
Why is it profitable to buy paintings by modern artists?
What is the difference between investing in contemporary art and investing in Antiques?
The convenience of buying a painting
The picture is convenient to store. You initially not only make an investment, but first of all try to buy a very beautiful thing that would please your eye, decorate the interior, emphasize Your high status, good artistic taste. If you consider buying a painting as a profitable investment object, then you are already on the right path. The main thing is not to make mistakes. Most often, painting is unpretentious and can be stored for many centuries. The picture, on the one hand, is an investment, on the other, decorates the interior, becomes the object of good envy of Your friends and colleagues.
What are the features of investing in contemporary art?
First of all, if you buy a picture of Raphael, the value of it will already be embedded in the price that You pay. On the one hand, this will be an excellent guarantee of the safety of funds. The price of an old painting, especially of a great master, will only increase with time. Works by famous artists rarely leave private collections and with each appearance on the market there is a fairly strong resonance. The surge in price and, accordingly, the profitable sale of the purchased work is determined primarily by the strength of this resonance. If the picture is sold at auction and accompanied by a significant PR campaign, the price of the picture can really soar significantly. This will bring significant income to its owner. But on the other hand, ancient painting has become a certain classic. Therefore, the price behavior is more or less predictable and surprises should not be expected. The surge of interest in Raphael is unlikely to be due to the fact that suddenly we will open something about his life, or suddenly all the paintings will disappear from sale.
With paintings by contemporary artists, the dynamics of pricing is determined by several other factors.
The most profitable thing is the correct purchase of paintings by little-known artists
Most often, the best investments are investments in little-known artists. Here, you often have to rely on intuition, on expert opinions. This investment in paintings has the maximum risk. Very often, beautiful artists can remain unknown for a long time, undeservedly forgotten. But such purchases can bring the maximum profit when the mass buyer gets acquainted with their creativity. Yesterday, an unknown artist becomes fashionable, they start talking about him, discussing, having his work is considered a sign of good taste, which begins to talk about the elitism of their owner.
Professional collectors work on this principle. They acquire the works of little-known contemporary artists, and carry out significant work to promote their work: publish catalogs, hold exhibitions, and organize an information field that contributes to the growth of prices for these works.
This method is more expensive, but less risky, but it can only be resorted to by fairly wealthy collectors who have extensive practical experience in “promotion”, owners of galleries.
For a private collector of modern paintings or graphics, it is important to have a developed artistic taste, which will help to highlight a work that is a real masterpiece of fine art and will have the maximum investment potential.
Trust your emotions when buying a painting
In the field of art, the emotional factor is one of the most important and defining. It seems to us that this is correct. No matter how attractive the picture is from an investment point of view, it must first of all evoke an emotional response from the buyer. You take a certain risk when you invest money in contemporary art, so the reward for this risk should be the emotional satisfaction of owning this painting or other piece of art.
Speaking about the emotional side, it is important to emphasize that buying a picture, you not only make an investment, the value of which will only increase over time, but also acquire, first of all, a beautiful thing that will please your eye, decorate Your interior, will emphasize the sophistication of Your taste.