Art expert or not, no one can deny that the factors behind artworks' pricing and investment potential are a maze, especially if you're interested in gathering such valuable holdings for lucrative purposes. As soul-lifting and fulfilling artistic creations are, the fact that they're differently understood depending on the viewer's lenses doesn't generally bring the artifact's price up or down. More dynamics hide behind such calculus, and fortunately, a decently priced paperback from a world-leading art market connoisseur discloses facts and notions people have long wrapped their heads around. Having studied over 500K artists, Magnus Resch drew some priceless conclusions that he eagerly shared with a broad audience via his 2024 book release "How to collect art".

The issue of art collecting is as old as the hills, but the best thing is that a straightforward answer or one-size-fits-all approach doesn't even exist. The art market is unpredictable, liquid, and fluctuating in nature, meaning that you have to continually learn new insights to create a successful investment strategy. That said, the magical beauty that lies in artworks' potential to catch on remains largely a guessing game. Similarly, the pieces that rose in fame and partake in the collections of the privileged 1% of worldwide art collectors are likely impossible to attract. Still, they can be analyzed to find out what makes them incomparably valuable.

Everyone, from seasoned auctioneers to newcomers, can benefit from deeply-researched insights from some of the world's best art market gurus. Let's discover the essentials of collecting art like a pro!



Newbies, remember. Art isn't just about ROI

Possibly one of the healthiest pieces of advice an experienced art collector can share with their disciples is that art, despite the seemingly primary purpose of Resch's book, is not to be looked at only through financial lenses. The art expert himself has emphasized that his artwork selection process goes through several stages but mainly boils down to the emotions derived from the eyed piece and the support such a procurement would show to the original artist.

Aspiring collectors may think about the lucrative side of their intended activities, and while art gathering can turn profitable, this theory indisputably holds for the uptown crowd of art. Those late to the game have few to no real chances of putting their hands on artwork that's most of the time part of some tycoon's inheritance. The rest of the art pieces, making up over 90% of what’s found on the market, hold less potential to generate fortunes down the road.

For common sense reasons, the biggest and most important lesson you can draw from Resch is, without sounding soapy, to stick with pieces that leave you genuinely impressed. The next time you come across authentic sculptures that speak to you for sale and ponder your approach, know that art experts encourage you to act on your wishes and invest in it, as long as you're not buying out of FOMO or irrationally.

Breaking down the main points of creating a collection

Resch, who also lectures at the renowned Yale University, synthesizes the main criteria based on which a fresh collector should create their investment strategy when hunting priceless pieces. Besides pointing out the necessity of finding genuine fulfillment and visual enrichment in the creations procured, the author clears out dumbfounding concepts and variables in ways everyone can comprehend, refraining from specialized vocabulary and the admonished snobbery of insiders.

Purchasing art responsibly should be the ultimate goal on your list, meaning that you'll buy from reliable sources while encouraging the continuity of creation of the creators behind your new collection addition. Furthermore, responsible acquisitions are about making thoughtful decisions and not prioritizing the lucrative value.

By investing in the artists' work, you'll be contributing to their creativity, prompting them to create new art, and inspiring the community.

The rules of investing in art

With an abounding art market that's only rising, as over 763,000 transactions were registered in 2023 and more are bound to occur this year, it's natural to question your art investing mindset. What exactly are you buying that superb painting or sculpture for, and what has helped it clear its path to your heart? It costs an arm and a leg, so should you think of its future valuation, too? Interiorized questions are numberless. Fortunately, there are two major rules for buying art.

1. What's the purpose of your investment?

No one says you can't buy an artwork motivated by investing, collecting, and decorating in chorus. However, while your intrinsic motivation doesn't mean these catalyzers should be mutually exclusive, art purchasers usually lean on two motifs.

If you're embellishing your room, the purchase's financial or historical value is of little interest. You want the space to look nice and level up its aesthetic value.

On the other hand, if you seek long-term returns, you may not find yourself moved if the piece in front of you doesn't appeal to you in any way. With an advisor's help, you can manage this task just fine as long as you know why you're willing to spend money on art.

2. What is the artist communicating?

Before committing fortunes to collection additions, learn to decipher the meaning and significance behind the longed-for artwork. Build your visual literacy via destined books, online platforms, shows, courses, and other resources you find reliable and worthwhile. Art doesn’t have to be easily understood, but you need to learn how to break it down to know what you’re pouring money into.

Bottom line

Listen to your taste, but be attentive, as art market values fluctuate widely and without warning. It blooms on knowledge asymmetry, and investment channels differ dramatically, meaning that you'll need to conduct some research to determine whether it’s best to lean on the help of an advisor or DIY.