Investors looking to diversify their portfolio may consider investing in art.
Art is a long-term investment in a cyclical market. Coveted artists fall in and out of fashion, so holding on to a purchased work and selling when the market is right is a strategy art investors often employ.
Art speculators follow the art world closely, and invest in artwork they believe will increase in value over time. These investors seek out artwork at affordable prices from emerging artists with an eye toward selling the artwork when the artist’s career takes off.
Other investors eschew the trending artists, and buy obscure, but relevant well-researched pieces for their portfolios. With a bit of due diligence, investors can find and invest in authentic, centuries-old art that may not be well-known or currently popular, but have solid provenance and can become a good investment risk.
Buying artwork that is off-trend is another way to take advantage of art market fluctuations and caprices. The value of an artwork is measured against its perceived historical import. So, an investor may regard works around the fringes of what is trending to find hidden gems that will hold their value over time. Major artists with less visible, smaller works, such as lithographs or studies and drawings, can be affordable avenues to diversify a collection and enter the art market without too much initial capital investment.
The knowledgeable Emillions staff can advise buyers on prospective investment art based on the buyer’s portfolio needs.