Investing in Art as a Strategic Choice in a High-Inflation Environment
Many people are feeling the pinch right now because prices for almost everything are going up. This is called inflation, and it's happening all over the world. When inflation is high, the money in your pocket buys less than it used to.
This can make it challenging to figure out where to put your money so it keeps its value over time.
One idea that's gaining attention is putting money into art. Unlike stocks or bonds, art doesn't go up and down with the stock market, and some people think it could be an intelligent move when times are tough.
Let's consider why investing in art might be a good idea.
Why Invest In Art?
Investing in art can be smart, especially when the economy isn't doing so well.
Unlike stocks or real estate, art often holds its value better when things get rough financially. This means that art can stay steady even when prices are jumping everywhere for other stuff.
Looking back at times when inflation was high, art kept its value and sometimes even became more valuable. People have seen that during these tough times, art can be a safe place to put their money, helping them not to lose out when everything else is uncertain.
Benefits of Art Investment
Putting your money into art is a good move for several solid reasons.
It adds a different kind of item to your investment mix, which is a smart play when usual investments like stocks or houses aren't doing too well. Art's value doesn't go up and down with the stock market, making it a reliable option when the economy gets shaky. Also, some pieces of art grow in value as time goes by. This means the art you pick up now could be worth much later.
A big plus of investing in art is that you get to enjoy it. You can't enjoy stocks or bonds, but you can hang art on your wall and appreciate it daily. This makes art a unique choice for putting your money somewhere. It has the chance to make more money over time and gives you the joy of owning something beautiful. This way, investing in art offers financial benefits and the simple pleasure of having art in your life, making it a great addition to where you put your money.
Collecting art isn't just about the pieces you buy; it can also lead to meeting new people and making connections. When you get into collecting, you'll likely meet artists, visit galleries, and run into other people who collect art, too. This can make your social life more exciting and allow you to learn more about art from others. Being part of this community can offer you tips and advice on collecting, which could help you make better choices in what art to buy.
Risks and Considerations
Investing in art has its challenges.
You must know a lot about art to make smart choices. The art market is challenging to enter, and selling art can take time, making it a less liquid option than stocks or bonds. You can't always sell a piece quickly if you need cash.
Also, keeping art safe and in good condition can cost extra money for insurance and proper storage. Despite these issues, it's crucial to buy art that you like. That way, even if its financial value doesn't go up as much as you hoped, it still has personal value, making it a worthwhile addition to your life and home.
How To Start Investing In Art
Starting to invest in art can be simple and doesn't have to cost a fortune.
Begin with a small budget to avoid significant risks. Do your homework to understand what kind of art you like and what might be a good investment.
There's a lot of info out there, so take your time to learn.
Also, check out online art platforms. They offer a way to buy art from upcoming artists at reasonable prices. This approach lets you slowly build a collection without spending too much money all at once.
Final Thoughts
When prices keep increasing, putting your money into art isn't just about possibly making more money over time. It's also about having something real and beautiful to show for it. Art allows you to own a piece of culture or history that you can enjoy every day, not just numbers on a screen.
Plus, protecting your money from losing value can be wise when everything else seems uncertain.
Investing in art can be a great way to balance out your savings, offering both financial gains and the simple pleasure of having something beautiful in your life.
Top five reasons to get your artwork authenticated.
You may have had your artwork for one month or twenty years, but one thing that is important to know is the current market conditions of the artist. Is that artist “hot” right now? Is now the time to sell? You may be surprised at the appreciation of your collection or piece. Or, it may be wise to keep it and wait for more favourable times to sell.
You may be interested in where to sell your artwork but just don’t know the best place to do so. At artquote.ca , every authentication comes with a local and market auction house that would be best suited to sell your piece as well as the primary market that sells the artists artwork. Example, if the artist is Polish it is likely that Poland would be the primary marketplace that their artwork is sold.
Sometimes we inherit artwork and really don’t know the true worth of the collection or piece of artwork. In this case it is so important to get the artwork authenticated to know the true worth. You may keep the pieces or sell them, but it is imperative you know what they are worth. artquote.ca will not charge you if the artwork is below the price of the authentication.
You may have had your collection for a long time and have not got your pieces valued recently. Your insurance may not know the true value of your artwork. This is not a good position to be in. By getting your artwork appraised and knowing the true value you cover yourself.
Often when authenticating artwork I find other pieces of information that you may have not known about the piece in question. Was it exhibited or owned by someone notable?
There are many reasons to get your artwork authenticated but what it really comes down to, is having trust in the authenticator and knowing they have your best interests at heart.