Owning original artworks has become more accessible and affordable in recent years, and it’s no longer just reserved for gallery owners and specialist collectors. More people are starting their own art collection on a budget and creating their own personal art collections at home as a satisfying way to spend their well-earned cash. As an experienced art collector and art gallery director, I know that art is a great investment. Original art is an excellent investment because while you can immediately enjoy a return on your investment by enjoying it on your wall, you can also hold onto it as a long-term investment with the prospect of one day achieving a financial return. This adds to the complexity of art investing because you need to ensure you are buying something which meets certain financial objectives, and you would be purchasing with certain criteria in mind (such as the artist’s sales history and mediums, etc) while also ensuring it connects with you in an emotive way. Art is a fun investment which brings together financial gain and aesthetics – two things that rarely meet!
Any investment is a project requiring the investor to be informed and open to risk. Like any class of investment, art is a gamble and often a higher risk can return the highest investment return. That of course does also mean you can lose money by backing the wrong investment. Just like a sharemarket investment, no matter how safe a stock looks the price could go backwards, or a company you have invested in could even fold. This is where art investors will always win – because you can still be enjoying your investment while the markets are falling, and you will always retain the physical item of some value.