When it comes to investments – there are a plethora of different areas in which one might immerse their efforts. When a regular person hears the word “investing” though, the mind almost always tends to shift to stock markets or real estate. Getting familiar with investing in such huge, already established markets can be intimidating. This very reason is one of the most common ones that turn newcomers away from getting serious with investments.
Well, it doesn’t always have to be like that. Investing in art is a great example of how investment can be beautiful, quite simple, and yet incredibly profitable. Many people aren’t all that aware that investing in paintings is even a real opportunity. This is why, in this article, we are going to help you understand the world of investing in paintings better. There are plenty of reasons why you should consider investing in paintings, so, let’s talk about them!
Everyone can get a share
A lot of people that get interested in investing in paintings tend to run away when they look at the prices of the highly valued paintings. This is especially true if you are just starting, and don’t have the luxury to burn a hole in your wallet.
A good thing is, you don’t have to do that, as beginners have some great ways to experience painting investment. How this works is well explained by Masterworks io, one of the companies that provide the opportunity for everyone to partake in painting investment. They explain that you can buy off a percentage of a certain painting, and sell it when its value rises. This is, of course, quite similar to trading stocks, but it is far more reliable – and that leads us to our next point.
It’s more reliable than stock investment
It is without a doubt that trading stock comes with its risks. Of course, there is a certain degree of predictability. The problem is, if the entire market starts crashing down – your investments are crashing down with it. A great thing about investing in paintings is the fact that you avoid this problematic dependence on the state of the market. Paintings and their value aren’t dependent on the state of the market and how it is changing. Their value is purely intrinsic, and that is a major bonus when it comes to investing in them.
This level of security is undoubtedly something that you can rarely find in the stock market and real estate. When it comes to most paintings, their values are only going to rise as time goes by. As this is something that is also a big plus, we’re going to explore this aspect further in the following text. In order to fully benefit from the rise of value, you must first understand some important aspect to how the price changes exactly.
It gains value with time
In general, the rule in the world of art is – the older, the more valuable. This can be true for a piece by any artist, but, it is especially the case for deceased artists. Even though the value of an art piece increases during an artist’s life, its price will dramatically grow after their death. The reason for this is simple – while the artist is alive, they can create more paintings, but, when they are no longer with us, the number of their paintings is finite. After an artist’s death, many collectors start grabbing their pieces because they are aware of the potential they can have. This ultimately means that the value of their paintings rises exponentially.
So, to make sure your investment is worth it, there are a few things you can do. One of the strategies is the one we have already mentioned, but, the more effective one is certainly buying the paintings during the painter’s lifetime. Not only will you support an artist, but you will be able to profit a lot after some time. Also, consult with professionals to see what pieces are worth investing in. These can often be paintings by lesser-known artists whose prices will most certainly be lower. So, you might need to dig a little deeper, but you might find some unexpected gold.
The process might be slow, but the payoff is inevitable
If you want to invest in paintings, you have to prepare yourself for some patience – although it is absolutely worth it. A lot of people often get discouraged because they think their investments will pay off in a couple of years. Even though it might take longer than you wish for it to take, as we’ve mentioned previously, the more you wait – the higher the value.
So, get ready for some waiting, but when the day comes, the payoff will be inevitable. Whether you will resell a painting to another art lover, to a museum, or anyone else, if you have a valuable piece a few decades old, the money you will get will not be even comparable to the amount you invested in the first place.
You get to enjoy your investment firsthand
Perhaps the most wonderful part about owning a painting is that art, in itself, is magnificent. A painting can make your home look more beautiful, it can bring peace, serenity, and joy in it, as well as in your life. Even though owning art pieces can be a great investment, its true value goes beyond wealth. When you have paintings on the wall, you get to enjoy their aesthetics, you get to think about how and why the painter made every brush stroke. You get to be a part of their world, their thoughts, and aspirations. After all, that is exactly what a painter wants. They want you to be a part of their world, and to create your own based on their imagination. So, even if you are just buying the paintings for profit, you will still get to enjoy the fantasy world it brings into your home.
In the end, investment as it is, no matter what the subject of investment is – governs by some fairly universal rules. So, risk and reward, understanding your market – all this is something that you can expect when investing in paintings.
The main difference when it comes to paintings though is that such investments are more reliable than most of the stocks that you can buy. Sure, you might not experience the adrenaline rush as when you’re watching the stock you’ve bought strengthen in real-time. You might even have to wait for quite a few years to get there. But what better way to wait for payoff than to be able to enjoy what humans have admired throughout the entire history – the beauty of art.
Information sourced by the author for luxuryactivist.com All content is copyrighted with no reproduction rights available. Images are for illustration purposes only. Featured photo by Andrew Neel from Pexels.