Invest
Investing in art? Here’s where to start
Art investing can seem like a novel way to combine investing in aesthetics and assets, but you shouldn’t enter it without doing your research.
Investing in art? Here’s where to start
Art investing can seem like a novel way to combine investing in aesthetics and assets, but you shouldn’t enter it without doing your research.
With the barriers to entering the property market remaining intimidatingly high, more and more young investors are looking for alternative investment vehicles.
Even if it isn’t for everyone, investor Kerry-Anne Blanket said that art remains an option worth considering.
“Most art investors start out as collectors, so if you’re already looking at buying a piece of art for your home, it makes sense to turn this genuine interest into an appreciating asset,” she said.
While art investing might seem far removed from things like exchange traded or mutual funds, Ms Blanket emphasised the importance of doing your research.
“Ideally, though not always, good art will continue appreciating in value over time, but like any investment, investing in art carries risk, so it’s important to choose well and wisely,” she said.
Ms Blanket’s general advice is to begin by considering the aesthetic pleasure of any purchase ahead of the financial benefits second, “because then the enjoyment of your investment is immediate and consistent, regardless of whether the markets rise and fall”.
Describing the work involved with keeping on top of the Australian art market as a full-time job, she recommended those looking to invest start by finding a gallerist.
According to Ms Blanket, a reputable gallery who is immersed in the industry will be constantly monitoring the market for growth opportunities.
“Be sure to ask the gallerist lots of questions about the artist’s sales history, what prizes they may have won, their art-making process, how their works are selling on the secondary resale market and about their future projects and upcoming exhibitions,” she said.
A good gallerist will be happy to talk through these and other questions, Ms Blanket suggested.
Once you’ve found and acquired an artwork, that’s just the beginning.
“The artwork needs to maintain its original quality, so you need to factor in conservation aspects such as temperature, humidity and sunlight,” Ms Blanket explained.
The costs of keeping your art in prime condition are another thing that you’ll need to factor in.
“If you put it into specialised art storage, you’ll need to consider the fees associated with that over time, as well as insurance should you choose to go down that route,” Ms Blanket noted.
As opposed to something more volatile like stocks or cryptocurrencies, she advocated for art as an investment with a longer-term horizon.
“Like any market, the art market has its ups and downs, and given the subjective nature of art appreciation, artists who were once in favour can just as easily fall out of favour,” she said.
The unique appeal of art investing can also serve to insulate it from many market shocks, she noted.
“One of the perks of art as an asset is that its value doesn’t tend to rise or fall with the stock market, so even if the stock market takes a dive, your art investment is likely to hold, or even increase in value,” she explained.
About the author
About the author
Invest
Investors are more open to net zero but less savvy on the risks
One report says that nine in 10 investors believe in the reduction of carbon emissions, while a third are willing to put their money on the line for it. ...Read more
Invest
Why ESG investing is the ‘longer-term answer’ to the energy crisis
deVere has highlighted the “value, necessity and rewards” of sustainable investing. ...Read more
Invest
First-time traders need to do their homework before dabbling with derivatives
New retail investors should be careful not to let the potential returns offered by derivatives overshadow the risks involved. ...Read more
Invest
Ethical investment means asking about more than just risk and return
Today’s wealth-creation journey requires more than just the basics of risk and return, but looking to leverage your interests into unique financial opportunities. ...Read more
Invest
Mutual funds are coming to Australia, but could their biggest audience be elsewhere?
Even if they’re not the target audience, local investors will have a new option to consider when mutual funds arrive in Australia next year. ...Read more
Invest
ASIC warns of ‘blatant’ pump-and-dump social media campaigns
Australia’s securities regulator is beginning to take social media into account when it comes to clamping down on misconduct in the market. ...Read more
Invest
The financial habits of the millennial mindset are coming into focus
How does each generation approach investing, saving and managing their money? ...Read more
Invest
Rising house prices won’t budge cash rate: ‘Not on our agenda’
The RBA has no plans to increase the cash rate despite rising house prices. ...Read more
How the post-lockdown period will influence property, what the soaring NFT market means, and defining financial wellness
Listen now
APRA’s mortgage crackdown, the power of DeFi and last-minute tax tips
Listen now
What to expect as the end of lockdown looms? Will the Stage 2 tax cuts boost your tax return? Where should investors be looking as the economy reopens?
Listen now
Could property prices inflate by another 20%? What’s happening in recent dividend announcements? Did your fund fail the YFYS test?
Listen now
RBA says BNPL 'no surcharge' rules distort competition
Read more
Australia’s banks may be more vulnerable to cyber attacks than you think
Read more
Investors are more open to net zero but less savvy on the risks
Read more
The more time I spend looking at my money, the further I feel from financial freedom
Read more
Invest
Investors are more open to net zero but less savvy on the risks
One report says that nine in 10 investors believe in the reduction of carbon emissions, while a third are willing to put their money on the line for it. ...Read more
Invest
Why ESG investing is the ‘longer-term answer’ to the energy crisis
deVere has highlighted the “value, necessity and rewards” of sustainable investing. ...Read more
Invest
First-time traders need to do their homework before dabbling with derivatives
New retail investors should be careful not to let the potential returns offered by derivatives overshadow the risks involved. ...Read more
Invest
Ethical investment means asking about more than just risk and return
Today’s wealth-creation journey requires more than just the basics of risk and return, but looking to leverage your interests into unique financial opportunities. ...Read more
Invest
Mutual funds are coming to Australia, but could their biggest audience be elsewhere?
Even if they’re not the target audience, local investors will have a new option to consider when mutual funds arrive in Australia next year. ...Read more
Invest
ASIC warns of ‘blatant’ pump-and-dump social media campaigns
Australia’s securities regulator is beginning to take social media into account when it comes to clamping down on misconduct in the market. ...Read more
Invest
The financial habits of the millennial mindset are coming into focus
How does each generation approach investing, saving and managing their money? ...Read more
Invest
Rising house prices won’t budge cash rate: ‘Not on our agenda’
The RBA has no plans to increase the cash rate despite rising house prices. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
