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Saturday, May 25, 2024

Is art a good financial investment?

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The fine art industry is a good financial investment because of it’s still booming. Every day, it seems, a new auction record for “the highest sum ever paid [fill in artist’s name here]” is set. So, what does this mean for the painting you bought a few years ago to go with your sofa? It might appreciate in value or be as marketable as your child’s pasta-filled art creation.

So, how do you figure it out? As with any investment, you should do your homework and step outside of your comfort zone. The art market is volatile, and there are no promises of profit but with little research and planning. You can fill your house with images that will serve as valuable assets in the future. Consider these pointers for selecting excellent art and distinguishing Michelangelo from macaroni.

Try to buy original art as much as possible

You stroll into a gallery and fall head over heels for a $5,000 painting, but you can’t afford it. The gallery owner explains that the items are giclées. And offers you a sample of the same artist’s work for $500. A giclée is a machine-made print, a copy printed on quality paper or canvas that rivals the original in color and clarity. However, it is still a copy.

Because the uniqueness of a work of art determines its value. An original will always be more valuable than a replica. While a giclée may be described as “museum quality” or “archival,”. And the vendor may offer a certificate of authenticity, it will never be worth as much as an original. Giclée’s are even seen by some artists and appraisers as a ploy for inexperienced painters and collectors.

While a certificate doesn’t add much value to the reproduction. A new signature and, notably. A remarque (an original drawing done by the artist in the margin of the giclée) might boost future worth.

Although you may hear tales of giclée’s being proudly displayed at prestigious institutions. Like the British Museum and the Metropolitan Museum of Art. The works in these collections are limited edition Iris prints of digital images or digital manipulations. Such as Kiki Smith’s “Nest and Trees” at the Met. They are not replicas of original works of art.

To earn revenue, museums do sell giclée reproductions of masterpieces. These giclée’s, while appealing to the sight and spirit, will not earn you any money in the future.

Buying prints and posters

With their mass-produced prints, Currier & Ives introduced art into the households of America in the mid-nineteenth century. During the early half of the twentieth century. Prints by artist Maxfield Parrish were displayed in one-quarter of all American homes.

These pictures are forerunners to the posters available nowadays in malls and museum stores. Posters, like giclée’s, provide access to a work of art, but they are not the same as fine art prints. Which might take the shape of a hand-pulled silkscreen, lithograph, or block print.

You can usually tell the difference between an artist’s print and a poster with your naked eye; however, you may need a loupe or magnifying lens in some situations. The paper is left with a small dot matrix as a result of the offset printing process: Consider a comic book or a Roy Lichtenstein artwork, both of which have exaggerated color dots.

The size of the edition (the number of copies an artist creates of a single piece), the significance of the work, the quality of the print, and whether it is signed and numbered by the artist are all variables that influence the value of fine art.

It is the rarity of a print that gives it value in the print market. A limited-edition print with a small run is more valuable than a mass-produced picture. Even a print with a lower number of pulls—say, No. 10 of 100 can have a higher value.

Go for art auctions and try to get the bet deal

A cruise art auction is exactly what it sounds like: it’s a maritime trip where great art is displayed and sold. The cruise auction might appear to be a godsend to the prospective art investor, with name-brand artist prints, drawings, and paintings accompanied by certifications of authenticity. As lots are auctioned off, the artwork changes every day, and written assessments imply that items are being sold for a fraction of their true value. It may appear as if you’ve stumbled onto a floating financial utopia.

Although the artwork at these auctions may be real, it is not always a wise investment. Buyers feel that authenticity equals great value, which is why cruise auctions succeed. 1 Unfortunately, authenticity does not ensure a piece’s uniqueness or significance in the art world. The most important rule to remember when buying art is that uncommon art is valuable art.

But how can you know whether the item you bought at an auction is a rare find? Do your homework. Before you put down the plastic, go to your ship’s internet café. You can learn more about the artist and the artwork by going to artfacts.net or eBay, and you can receive a representative sample for the price by going to artfacts.net or eBay.

Investing in art to make profits

Many people who purchase paintings do not sell them later, and this fact might distort art pricing samples. When an artwork is auctioned, it is usually because the owner believes the item will fetch a high price. Over 40% of art resales are reflected in auction prices, while some experts believe that just 0.5 percent of artworks purchased are ever resold.

If you have a real discovery on your wall and are ready to sell it, a fine art auction house is your best bet for a fair return. Fine art auction houses generally charge between 5 and 25% of the sale price for auctioning your item.

Internet auction sites for do-it-yourselfers generally bring in considerably less money. Still, art is a long-term investment, and while the art market may be steady or even provide massive returns on investment during boom times, it is one asset that can easily lose value during downturns.

Final words

When it comes to buying art, gallery owners will tell you that it’s an emotional decision, but don’t believe them if you’re thinking of it as an investment. Look into any living artists who attract your attention. Find information about their education, commissions, and exhibitions.


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