Investing in fine arts and collectibles has both short-term and long-term rewards. The short-term benefit is that it beautifies your home or office, the long-term benefit is that it can bring in significant financial returns.
Tips for Investing in Fine Arts
• Research local and upcoming artists. Check online to find artists that are receiving excellent reviews and visit local galleries to determine the availability of targeted artists.
• Find your artwork. Once you find the artist you like who has good prospects, contact the artist, and schedule for a meeting. Interview the artist when you meet him or her. Ask many questions because the credentials of the artist are an important part of the investment.
• Determine the worth of your artwork. A piece of fine art may make a good investment but it is important not to pay too much for your investment just because you have been told that its value will increase in future. Make this decision for yourself. Find out if the piece of fine art is worth the money you will be paying for or if the price is inflated because it is being shown in a reputable gallery.
• Verify authenticity of the piece of art. Make sure you see it yourself. Avoid buying an artwork unseen because you might buy a fake piece. Inspect the piece and find out if it is really the work of a particular artist and not a fake product. Hire reputable dealers for further verification.
• Consider investing in pieces that you really like. Like Islamic banking and finance, the true value of a piece of fine art lies in its intrinsic value, it should be a piece that you would be proud to display in your home or office even if its value will not appreciate in the end. If you buy a piece of art simply because you think it is a good investment, you are missing the whole point of investing in fine arts.
• Spend only what you can afford. The value of fine art pieces increase with time. However, for many art pieces, the time it takes for them to become worth their initial investment can be years. Only pay what you can afford now rather than paying more just because you feel it will make lots of money in future.
There are many options when investing in fine arts and collectibles including rare wine, war memorabilia, rare books and comics and classic cars.