2020 taught us a lot of lessons the hard way — and 2021 appears to be following suit.
One of the most depended-upon methods for growing wealth in the United States — the stock market — has proven itself to be less predictable and more volatile than ever before, exemplified by the massive explosion of Gamestop’s stock driven by an online investment community.
Hedge funds were racing to combat the effects of the blow-up, leaving people to speculate as to whether or not the stock market is dependable enough for long-term wealth investment.
As any seasoned investor knows, diversification is key.
And during a volatile market, using art as an investment is a great way to diversify and explore new options for wealth acquisition.
In this article, we’re giving you some reasons to consider art as an investment so that you can be better prepared for the road ahead.
Let’s find out how!
Why Turn to Art As An Investment?
Periods of volatility can be a frightening time for investors, and if the stock market has taught us anything over the past couple of months, it’s that unpredictable fluctuations are always on the table.
This could serve as a warning sign for things to come, with the internet empowering the crowd to influence the market like never before.
In this strange time, many investors are turning to art as an investment for a lower-risk alternative to an investment strategy.
We’re not suggesting that you pull all your money out of the market and dump it into a hard, appreciating asset like art, but diversification certainly never hurts.
Investors have found that by doing their research, working with the right people, and investing in the right pieces, they can discover prospects of high long-term returns on artworks.
And this strategy can go to work for you.
In the past, many investors — especially those who don’t run in artistic circles — have felt like art as an investment is somewhat of a closed shop.
Even if you’ve never bought a piece of art before, you can get in on the action!
How to Utilize Art As An Investment
The fine art market has been seeing consistent year-to-year growth, amassing sales of over $1 billion USD per year since 2018.
It’s no wonder that investors are excited about the opportunity.
In order to make successful investments in art, you should consider:
- Where your money should go
- What categories of art are set for growth
- The genuinity and originality of a piece
- How much capital you have
First off — you never want to take a chance on art investment. You should only buy from reputable art selling platforms that ensure safe and secure purchases. By doing so, you can always validate the genuinity and originality of a piece.
The categories that are seeing the most growth in the art market right now are the PostWar and Contemporary sectors, as a new wave of artists are being empowered by digital technology and other methods than ever before.
This is good news for you, the investor, because you don’t need a ton of capital to get started.
You don’t need to have a million bucks to throw at a classic Picasso to use art as an investment. A better strategy, in fact, is buying from up-and-coming but established artists whose work is affordable now, but set to grow in the future.
When you buy a piece of artwork, expect to hold onto it for a while. Keep in mind that art is a hard asset and will appreciate over time, especially as the artist gains notoriety.
One of the best parts about art as an investment is that the piece delivers value while it appreciates.
When you buy a stock, it sits in your portfolio. There’s nothing intrinsically exciting about the investment.
Art, on the other hand, can enliven your home and make you feel good as it appreciates. You can literally witness the beauty of your investment hanging on the wall, making it an overall more enjoyable and exciting experience that you can show off to all your visitors.
Because let’s be honest — would you rather attend a dinner party where the host talks about their stock portfolio or the artworks hanging on their walls?
We believe that the far better story resides within art.
Conclusions: How to Get Started With Art As An Investment
Looking for your start in the art market?
You don’t necessarily have to dive in head first and blind. You can take baby steps, and start by investing in pieces that truly speak to you.
Here at Gallerima, we make easy to discover reputable art that has a bright future.
We’ve sourced the best up-and-coming artists from around the world, making it easier than ever for you to connect with them all while guaranteeing safe, secure, authentic transactions.
Are you ready to start your career as an art investor?
We thought so.
Browse our outstanding online art marketplace today and get ready to appreciate art as an investment!