Specialized funds: if you have a huge fund, you can go through specialized funds. The minimum bet depends on each fund, but is usually on a floor of several hundred thousand dollars. But even if the entrance tickets are high, you can expect a high profitability that is often greater than 10%. The only drawback of this strategy is that you do not see or enjoy your work in the best online art galleries .
Short-term buying: if you have a taste for risk, you can acquire the work of an emerging artist to resell it almost immediately, in order to release an added value in a short time. But you can also keep the work hoping that its value will increase over time. So invest only in a property that pleases you. You should always expect that he will not find a buyer immediately.
Depending on your goals, you can combine these strategies or choose only one. In the art market, there are artists and works that are side and cost more. If your goal is to preserve your wealth while valuing it year after year, focus on long-term investment in recognized works.
But there are also new talents who enjoy certain notoriety even if they are not yet recognized. However, their coast can sell their work from 10,000 dollar. If you want to gain more spectacular value, this is the second option you must choose. But the risk of loss will be just as important.
There is another point you need to know: the higher the price of the work, the more often the performance will be. According to Artprice, world leader in the field of information on the art market, a work of 20,000 $ is likely to produce an annual yield of 9%. The yield can be from 12% to 15% for a property of more than 100,000 $, and this increases again for a more valued work.
Invest in a work of art: acquisition method
There are several channels that allow you to acquire works. Among them are the internet and individuals who are not advised, especially if you are not connoisseur. Indeed, you may end up with poor quality works, or even copies. Prefer to do business with antique dealers or gallery owners, it’s safer. You can also buy the goods through the public auction halls. In this case, expect a fee of about 15% to 20%. These means that you have just mentioned are reserved for connoisseurs or individuals who are advised by specialists. But if you are wealthy and you have neither the necessary knowledge, nor anybody to advise you, nor time to go around museums and exhibitions, the best way to invest is to go through specialized funds.
Investing in art is now a good way to diversify your portfolio. It can be considered a safe haven, unlike bonds and equities. It is now accessible to everyone, but nevertheless requires good practice of investment strategies. Investment in the art is less volatile than a financial investment. There has never been a work that has lost half of its value in a year. And a recognized work is more likely to sell in a shorter time than a real estate.