Up until the last few decades, art investment was seen as reserved for the privileged few. However, modern day art investment and collections are no longer out of reach. With the right mixture of knowledge, support and energy, securing a fruitful and rewarding return is possible for anyone.
For many, investing in an individual piece is the initial attraction to purchasing art. Being able to proudly own that personal something that stands out from the run-of-the-mill prints you can find down at your local IKEA store. Owning art actually presents substantial opportunities, and doesn’t necessarily come with a price tag that seems unattainable. In this blog, we’ve consolidated a few top tips to consider when you’re thinking about purchasing art, both the benefits and the how-to’s.
Remember: We at Hancock Gallery are proud to employ a team of seasoned experts in the field. Whether you’re a first time buyer or looking to add to an existing collection, our specialists are happy to provide you with guidance, no obligation home approvals and information on finances. Book your consultation today.
Stable asset class
Using art as an investment opportunity offers many possible avenues, with the potential not only to possess a means of profitable gains, but something you can thoroughly enjoy as well. In fact, in comparison to other investment assets, art has repeatedly proven to be stable and fairly resistant to wider economic shifts. Even in recent years that have seen the pandemic and hard recessions, the sales of art have held strong while assets such as gold and oil have plummeted.
Continuous market growth
Consistency and continuous growth of the global art market is just one of the assurances you can rely upon when considering an investment in art. Partially due to the fact that an artist’s work can significantly increase once they are deceased or retire from their creative practice, a piece of art poses one of the most sound investments for those expecting a return. You may also want to consider where exactly in the market you want to enter. For example, beginning with a Limited Edition could be an excellent way to dip your toes in and accommodate a range of budgets.
L.S. Lowry could be an excellent example here. The late Manchester artist’s work has originally been sold for millions, which does appeal only, perhaps, to the elite budget. However, Limited Edition prints of the same work offer a fantastic starting point to a well-considered collection. Limited Edition prints, if looked after well, present a fantastic opportunity for almost guaranteed increase in value. Say 50 Limited Editions exist worldwide, over time those pieces may be lost or damaged in some way, rarifying your own edition and therefore increasing its value significantly. Not to mention the ability to purchase a representation of a famed work at just a fraction of the original’s price.
Emotional versus financial value
As we touched on a little in our introduction, purchasing art as an asset is a rare opportunity in that you can buy something you love and cherish. This ability to physically enjoy your investment presents a secondary benefit to your investment.
Some investors seek out artwork that solely poses a financial gain; purchasing pieces that nearly promise a hefty return in coming years with little care for aesthetic or concept. Other collectors make their investment decisions by seeking out work they enjoy, either for a specific aesthetic, artist they support and so on. They then are ready to make an informed decision based on the current market value and expected increase in value.
Both of these motives are equally valid in their own respects, and is something you should reflect on when considering a purchase - Would you rather a piece of work you can enjoy as it appreciates in value, or should you aim to be profit-savvy on cold, hard numbers?
Our Signature Collection
For those building their existing collection, or if you’re a budding collector with the long-term view to build your portfolio, you may find a challenge in diversifying your collection.
Our Signature Collection is carefully curated for investors and collectors alike and boasts a wide range of primary and secondary sales opportunities. For example, you may wish to diversify your collection by acquiring a range of well-established or deceased artists’ work, each with their own unique opportunities to increase in value. Work from Norman Rockwell, Ron Hicks and Peter Blake for example would create an excellent selection of both living and past artists, each with their own journey.
An alternate goal could be to collect artists’ work from around the globe; Lowry’s famous portrayals of the Industrial North of England complimented by Robert Longo’s portrayal of American political commentary could serve as an interesting juxtaposition that begins to form a well-rounded collection.
We have also created an in-depth Art Investment Guide that looks at these key points and explores other routes and information that can help to inform your decisions regarding investment.
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