A beginner’s guide TO COLLECTING ARTWORK
How to dip your toe into the wide world of art investment
Are you wanting to start a burgeoning art collection, but feeling out of your depth? Kerry-Anne Blanket, contemporary art expert and KAB Gallery director, explains everything you need to know to begin purchasing.
WHAT TO CONSIDER
If a piece of art has caught your eye, there are a few things to consider before buying if investing for financial gain is your number one objective. Much like shares, start by asking yourself questions like what type of return you’re looking for, how quickly you want to make it and how much risk you’re willing to accept, such as not making money or making a smaller amount than expected.
Unlike shares, art investment is a slowerpaced market. While it’s fairly achievable to receive 10 per cent financial return within a year with good shares, a 10 per cent financial return within a single year would be less likely with art. That being said, you can’t enjoy shares in the same way you can appreciate and enjoy your chosen artwork during the investment period!
CAN ANYONE INVEST?
In some ways we have been conditioned to see art investments as something only for the ultra-rich. In reality, art investment is for everyone!
With a variety of investment opportunities within the current market, most people will find the perfect piece of art to suit their taste and budget. I’m seeing plenty of conservative and traditional art collectors, mum and dad investors, and a plethora of millennial buyers taking advantage of buy now, pay later schemes. These allow investors to really consider the potential in their decision-making process without the need to purchase the art in a lump sum.
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WHAT’S WORTHY OF AN INVESTMENT?
A great place to start is to make sure you’re purchasing an original piece that comes certified by a reputable art gallery. Avoid prints or reproductions as these will certainly minimise the potential return on investment, since the unique one-off nature of original art is what provides its value.
The current market is literally flooded with artists and their work. While this doesn’t change the rules of finding a worthy investment, it certainly does muddy the water. That’s why it’s a great idea to reach out to an expert and ask as many questions as you can. This allows you to have a clear insight into the current trends and whether they’ll stick around for the long haul.
GETTING STARTED
The first step is to understand that art is emotive and sometimes investors can get carried away by paying too much for a piece they absolutely adore – after all, art is very subjective. Before heading into the wonderful game of art investment, work out your finances and set a budget. To make a profit, it’s wise to purchase within your budget and consider the potential growth.
As the investment time is most definitely long-term, you can maximise the experience by purchasing artworks to enjoy while the markets for them rise. Whether you intend to invest in a single piece or build a collection, take advantage of the aesthetic returns from the art you are buying.
WHERE TO LOOK
If you’re new to art investing or have a strict budget in mind, head to a trusted gallery and have a chat with an expert. Part of a gallery director’s role like mine involves working directly with artists as they develop their art for the primary market, reviewing past series, researching international artworks, and keeping up to date with collectors across the broader market. By doing this, I’m able to offer a fresh collection with a great range of eclectic, interesting, quality art to suit various tastes, styles and investment potentials.