Buying new pieces of art can help boost your investment portfolio. It might be costly, but you can expect to sell it at a higher price in the future. The problem is that not all works of art appreciate in value. Some factors may affect the value. Market changes and economic shake-up are among them. A scandal involving the artist could also drastically reduce the artworks value. Since its not easy to predict what might happen, its important to be cautious before deciding to buy artwork. Its even more crucial to take extra caution if you decide to buy art online. You cant trust all the stores or expect that they will sell you authentic pieces. These are some mistakes to avoid.
Lack of understanding
Shopping for art pieces isnt as easy as buying any other items. You have to spend a significant amount of money to bring home artwork. You dont want to regret your decision later because you didnt do due diligence. To invest in quality art, you have to know more about the artist. It would be an excellent choice to stick with artists who have a huge name. Their accolades add value to the artwork. However, emerging artists
might also have great artwork. The best part is that since theyre not yet popular, their work isnt too pricey. Once they eventually raise their profiles as artists, their work could skyrocket in value.
Apart from the artist, its also worth knowing the history of the art piece. Pieces that were under the ownership of celebrities and important political figures may also become more valuable. Pieces carrying historical and cultural significance also become drastically more valuable. The point is that its essential to understand the work of art first before deciding to buy it.
Selling the art piece immediately
The rule of thumb is to sell the artwork at least ten years after purchase. It gives enough time for the piece to be more valuable. However, some pieces are already valuable now given the artist who made them. You might not have to wait for a long time before seeing the value increase. The problem is that if the market becomes saturated with the pieces from the same artist. It could lead to a drastic drop in value. Its basic economics. If the supply is high, the value decreases. Hence, ten years of waiting is reasonable. By then, there won't be too many pieces from the same artists available. Artwork made by deceased artists is also more expensive. Since there's no chance that they will produce another one, the existing pieces become more valuable.
Not having proper storage
Before buying any artwork, you should know where to put it. You should have a proper maintenance plan if you wish to keep its value over time. Humidity and sunlight could alter the artwork. The colours might start to fade. There are also other unwanted incidents like fire or theft. Prepare yourself for these possibilities before buying any piece.
By avoiding these mistakes, you will feel more confident about your investment.