Whether you’re investing in old masters, well-established contemporaries, or the latest video pieces, collecting art can be a risky process. But for art collectors, famous works are more often than not solid long-term investments. For most people, the trouble comes when trying to invest in emerging art.
One of the biggest risks is knowing whether or not an artist is going to make it. You might fully engage with their work, but what if no-one else does? Especially as there are so many people coming out of art schools across the globe. But the potential advantages of investing in emerging art should be clear to everyone — whether interested, or uninterested in the art world.
Compare it to a business, and emerging art is equivalent to an early stage startup. If you really believe and connect with a product that you believe is going to make it big, the rewards are huge. That £1,000 investment yesterday could return millions in a few years time. As an emerging art investor, you essentially become an early adopter of an artists work. There is obvious risk here, but like those who invested in Bitcoin from the start, huge rewards.
So how do you find the future successful artists amongst the crowds of art school graduates? Established art collectors all start somewhere. The important thing is to learn, develop and create connections with artists.
This simple guide will hopefully make the transition from thinking about investing in emerging art, and actually taking the first steps clearer. We’re here to give you the tools to succeed long-term. Here are three easy to follow tips to make sure your first emerging art purchase pays.
1. Set a budget
This is important for every investment. You should never invest more than you can afford. It should go without saying, but there are plenty of people who took out loans to invest in the Dotcom bubble. There are a few things to bear in mind when investing in emerging art. Firstly, it is more expensive to invest in emerging art through the secondary market — galleries and auctions. There are advantages to both — you’ll get to see the work in the flesh for one — but you will be paying up to 50% more than the works true value.
There are two better value ways to invest in emerging art. First, and cheapest is to buy direct from the artist. The risks here should be obvious. How good is the artist’s judgement of their own work? How good is your understanding of the work in the current market? If you’re well-prepared investing in this way can reap rewards, but it is exceptionally risky.
Alternatively, investing in emerging art through Artpiq cuts the two disadvantages of the processes just mentioned. You won’t pay through the nose, and our expert art advisors thoroughly understand the art market, so every artist on our platform has the potential to make it big in the long-term. Though there is never a 100% guarantee with emerging art investment, this is the method with the best balance of cost and risk.
2. Know your taste
Now this is perhaps the most important aspect of emerging art investment. We all know that there is risk. So if you are investing in emerging art, you should really love the art you invest in. In the worst case scenario — the art you invest in flops on the world art market — you will at least have a piece of work that you will love to have in your home every day. Not an ideal scenario, but it is better to have a beautiful flop than an ugly one in which you have no personal connection.
To really get to know your tastes, we’d advise going to galleries, exhibitions and art fairs to start to understand the emerging art world. Once you’re aware of subjects, mediums, styles and different modes of art, you will probably know what you really like, and what you really hate. This should inform every investment you make. Obviously your tastes will change somewhat over time, but your core beliefs are unlikely to shift. Investing in art you love is the least risky form of emerging art investment.
3. Understand the market
Understanding the art market is tough work. It requires years of observation, study and interpretation. Even at this stage, there are never any guarantees. If you are planning on investing in emerging art through galleries, art fairs, or direct from artists, education is vital. Read auction catalogues, artists profiles and art collecting books to better understand the risks of investing in the emerging art before you start paying out.
There is another way of course. You could invest in art through Artpiq. You’re probably thinking — of course we’re going to say that. But with years of experience between everyone at Artpiq working in the emerging art market, we think we have a solid understanding of what’s happening right now. We’re here to pass that knowledge onto you. And, we’d never list artists on our site that we believe aren’t going to make it.
If you would like to learn more about investing in emerging artists, or would like advice on which emerging art investment is right for you, get in touch with us today.