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Is expensive artwork a good investment?
The wealthy elite is no longer the only ones who can afford to collect and invest in art.
In-person auctions were canceled due to the COVID-19 pandemic. Contemporary art sales fell by 34%, and many auctions and galleries shifted online. Eventually, sales surpassed previous records, and many works of art were sold.
Read along to learn if you could diversify your investments in expensive artwork.
What Is an Art Investment?
Art investing is a type of investment that has become more popular in recent years. It is not just about the art itself but its value and appreciation. Art investing requires a lot of research and knowledge about the artists, their work, and their market value.
Since artwork can be expensive, finding the right opportunity to invest in it can be challenging. There are some factors that you should take into consideration when deciding on whether or not to invest in artwork:
- Artist’s fame and popularity
- Artwork’s market value
- The rarity of the artwork
- The work’s condition
The most expensive artwork in the world is “Salvator Mundi” by Leonardo da Vinci. It was sold for $450 million by Christie’s auction house in 2017. It is one of fewer than 20 paintings generally attributed to Leonardo.
Another expensive artwork is called “The Card Players” by Paul Cezanne and was sold for $250 million at auction.
Buying Expensive Artwork Online
Art is a speculative investment, and it can be a lucrative one. If you are looking to expand your investment portfolio, here are some investing tips.
Explore some of the most popular online art galleries and auction houses. Check out some lesser-known sites where you can find great pieces at reasonable prices.
You can find artists you like through online publications and social media platforms like Instagram, and you can purchase artwork straight from artists’ websites. Or you may explore NFTs and digital art.
Companies like MasterWorks research to find pieces of art that have a reasonable probability of appreciation, and they manage the upkeep necessary to keep the works of art in excellent shape.
Click this link to learn more about the art market and art investing all in one place.
How To Protect Your Investments In The Arts
Art is an excellent investment due to its ability to increase in value over time while providing several other benefits. Some of the most significant reasons to invest in art are that it allows for a sense of prestige, increases in value over time, and can be used as an alternative means to store wealth.
The first step in protecting your investment is researching the artist and the artwork. Find out what they’re worth now and what they’ve been worth in recent years. The more you know about the artist and their work, the better you can protect your investment.
You should also ensure that you are dealing with a reputable dealer who will provide you with a Certificate of Authenticity. This guarantees that the artwork has not been altered since it was created and confirms the work’s physical integrity.
Invest in Art
Consider investing in expensive artwork.
Remember that the value of a work of art is not only based on what it sells for but also on its scarcity. The more limited an edition, the more it will be worth.
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