Art collecting is a hobby for some and an investment for others. Either way, the love and enthusiasm for art is relatively the same, just probably at different levels of knowledge. But this shouldn't be at anyone's way to stop them from buying and collecting what they genuinely love. But where to start? To start art collecting , it is vital to understand 1 why you are collecting and 2 what does the art market look like.
In this article, we will explain all the important steps you need to take to get into art collecting, and why collecting emerging art is a worthy endeavor for both novice and experienced collectors. It may seem redundant to talk about your intentions on art collecting. Still, it is an essential step to simplify your next steps. As mentioned earlier, some people collect for decoration; others collect because they genuinely love the artist or the artwork; and others, collect because they want to earn more money than they invested initially.
Some experts defend that art collecting is not the same as randomly picking up artworks. It is supported that art collecting involves a purpose that leads to buying art. The thing with this concept is that it puts off a lot of art buyers, creating an elitist art market.
Everyone should be allowed to buy art without needing to explain why they bought it. This way, the art market becomes a lot more balanced, giving opportunities to all kinds of artists to make a living out of their artworks.
Knowing your intentions makes the process of acquiring art a lot more freeing and less intimidating. So, if you are buying art because you want to decorate your bedroom wall , that's a great reason to do so! There are plenty of artworks that can fill up your blank space and create a more joyful experience to walk into the room. Look at these colorful and vibrant artworks that could fill any room in need of a bold splash of color.
Then there is the buyer that loves art for art sake. This buyer is most likely to have an eye for particular aesthetics, even a thematic or an artist. This collector gathers art as an extent of themselves, as a hobby. Some people like to go to concerts or read a book, and others prefer to have look at art from a particular artist in their own homes.
Imagine you love still life and flowers - this could be the kind of art collection you would have. Art collection dates back to the ancient periods and has started to flourish globally at the beginning of the 20th century. And now, it plays a significant role in the global economy.
The art market is currently divided into two sub-sectors: Emerging Artists and Established Artists. These two art markets are essential to understand because of their prices.
One is more expensive than the other, which often also reflects the recognition of the artist within the trajectory of art history. Emerging art is defined by the artworks being created in a contemporary spectrum by young artists or relatively under-recognized artists. Emerging art is then art produced by artists that are in the beginning stages of their career as an artist. They may have recently graduated from art school, not have gallery representation yet, or be represented by a smaller regional gallery.
These artists do not have less aesthetical or conceptual value than an acclaimed artist but rather are still waiting for their works to become more well-known and have greater representation in galleries and museums. Established art is made of artists that have reached an advanced level of achievement in their career nationally or internationally.
These artists generally have an extensive, strong body of work , and their value is defined by internationally-recognized galleries and auctions houses. Established artists often have a team of people working along with them in the studio. The emerging and established art markets are incredibly different, and there are varying considerations when buying from either type of artist.
An established artist artwork will generally cost a lot more than an emerging artist because of the status of the artist within the overall art market.
Emerging artists are usually more affordable than established artists, but this should not put you off seeing their art as valuable or as an investment. While buying emerging art , you are supporting this as-yet unrecognized artist to continue to produce art and sustain their career.
It allows younger artists to continue to develop their craft and eventually establish themselves more within the arts ecosystem.
Emerging art is where the next wave of creativity lays. Art galleries regularly tend to look out for emerging artists because they are the ones defining new styles and mediums. Art is a "lifetime" investment when art collectors bet on the future of a particular artist. Although it may all seem the same, the places where you can find an established artist are not the same as the emerging one.
Well- recognized, large galleries usually only represent acclaimed to mid-level artists. The artwork could end up being just an expensive home decoration. Low risk and low price tag: Instead of buying an original, you could opt to buy a print of an original painting or drawing. Many artists and galleries will make limited-edition prints of some works, announce a release date, and give collectors the opportunity to buy a print at a set retail price on their website.
A high-quality, limited-edition print can be very valuable and costs a fraction of the price of the original. But since prints usually aren't unique, they don't increase in value in the same way as the originals.
Low risk and high price tag: You can buy pieces by "blue-chip" artists such as Andy Warhol, which generally hold their value better but offer less capital appreciation, or upside. Blue-chip artists are those whose works have the most stable value and are not subject to fashions and speculation. More on that below. Importantly, if you're going to buy individual works of art, you probably want to buy works that make you happy.
Companies connecting people across the world make it easier to find and acquire the art you want. If you don't want the hassle of owning a piece of art, it's still possible to invest in artwork without taking possession of the physical asset.
Art funds, which are structured much like other investment funds, allow investors to partially own pieces of art. MasterWorks, for example, is a fund manager that acquires blue-chip art at auctions on behalf of its investors. It creates a holding company for each piece of art to acquire it, store it, promote it, and resell it for profit.
It registers that company with the SEC and issues shares to those who want to invest in that specific piece of art. Securitizing artwork in this way makes investing in art more affordable and the market for the artworks' shares more liquid. Investors can buy and sell shares much more easily than buying and selling the pieces of artwork themselves.
This type of partial ownership can be an accessible way to get into art investing. Firms such as MasterWorks conduct the research to identify artworks with a good chance of increasing in value, and they oversee all of the maintenance required to keep the artworks in pristine condition.
However, their investors pay a fee for this service, and they don't get to physically take possession of the art.
Unfortunately, there is no such thing as an art exchange-traded fund ETF or mutual fund. Focusing an ETF or mutual fund on art is impractical due to the illiquid nature of the art market. Art's singularity and inherent scarcity prevent fund managers from simply buying more Renoir or Basquiat paintings, like they could with stocks, in order to satisfy increasing investor demand. Similarly, if many shareholders of an art fund wanted to redeem their shares, then the illiquidity of the art market would prevent the manager from easily selling the fund's assets.
The index, which tracks sales of artists across various regions, styles, and periods from 22 auction houses around the world, can convey a broad sense of how the global market for artwork is performing. In , Artprice launched its Artprice Index , focusing on blue-chip artists. The company says that the index grew at an average annual rate of 8. There are a couple of problems with these art-focused indices. First, they only account for the auction prices of the artworks sold.
All of the costs associated with investing in artwork are disregarded, and they would certainly drag on art's performance as an investment. The sale price of a piece may not generate any profit if the art is sold at a price lower than the amount of the upfront costs such as sales tax and transportation.
The second problem is a phenomenon called "selection bias. Art indices are based on the available auction data. If a piece of art never sells, then there's simply no data. And the works that aren't going up for auction are often worth less than what the most recent buyer paid. Keep an eye out for these 8 artists at our weekly Art auctions. Or perhaps you want to cash in on an investment? Become a seller and start offering up your artwork for auction right away.
You might also like these articles:. Create your free account. Cookies You can set your cookie preferences using the toggles below. Alex Da Corte Alex Da Corte is an American multimedia artist, known for his site-specific installations, photography, video and sculptures.
Image source: Alex Da Corte 2. Image source: Michael Dotson 3. Chad Kouri Chad Kouri creates intriguing collages. Image source: Chad Kouri 4. Katherine Bernhardt Katherine Bernhardt makes large-scale paintings with patterns of everyday items, such as fruits, cigarettes and shoes, combined with elements from nature and animals.
Image Source: Glasstire 6. Trudy Benson. You collecting can put an artist through school, or enable them to continue their career," she says.
To compile the report, which currently focuses on emerging artists in the U. The intangibles are harder to quantify.
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