How profitable to buy a painting for investment
Buying paintings by contemporary artists, even little-known ones, can often be associated with significant costs. Therefore, it is important to talk about the profitability and justification of such costs. You must understand what you pay for and why.
A lot of “why” when buying
If you are an investor and want to not only purchase a beautiful thing, but also profitably invest money, then it is important to understand the answers to very simple questions:
Why can an investment in contemporary art be beneficial?
Why buying paintings by contemporary artists can make a profit, and sometimes a very big profit?
Why is collecting art by contemporary artists primarily a profitable business?
Why is it profitable to buy paintings by contemporary artists?
What is the difference between investing in contemporary art and investing in antiques?
Convenience of buying paintings
The picture is convenient to store. You initially not only make an investment, but first of all you try to buy a very beautiful thing that would please your eye, decorate the interior, emphasize your high status, good artistic taste. If you are considering buying a painting as a profitable investment object, then you are already on the right track. The main thing is not to make mistakes. Most often, the painting is unpretentious and can be stored for many centuries. The picture, on the one hand, is an investment, on the other, it decorates the interior, becomes the envy of your friends and colleagues.
What are the features of investment in contemporary art?
First of all, if you buy a Raphael painting, then its value will already be inherent in the price that you will pay. On the one hand, this will be an excellent guarantee of the safety of funds. The price of an old painting, especially of a great master, will only increase with time. The works of famous masters rarely leave private collections and with each appearance on the market there is a rather strong resonance. The surge in prices and consequently the profitable sale of the purchased work is determined, first of all, by the strength of this resonance. If the picture is sold at auction and is accompanied by a significant PR campaign, the price of the picture can really take off significantly. This will bring significant income to its owner. But on the other hand, ancient painting has become a certain classic. Therefore, price behavior is more or less predictable and surprises should not be expected. The surge of interest in Raphael is unlikely to be due to the fact that suddenly we discover something about his life, or suddenly all the pictures will suddenly disappear from sale.
With paintings by contemporary artists, the dynamics of pricing are determined by several other factors
The most profitable is the correct purchase of paintings by little-known artists
Most often, the best investment is investing in little-known artists. Here, most often you have to rely on instinct, on expert opinions. Such an investment in paintings has the highest risk. Very often, great artists can remain unknown for a long time, undeservedly forgotten. But it is precisely such purchases that can bring maximum profit when the mass buyer acquaints with their creativity. Yesterday, an unknown artist is becoming fashionable, people start talking about him, discussing, having his work is considered a sign of good taste, which starts talking about the elitism of their owner.
Professional collectors work on this principle. They acquire the work of little-known contemporary artists, and do significant work to popularize their work: they publish catalogs, hold exhibitions, and organize an information field that helps to increase the price of these works.
This method is more costly, but less risky, but only fairly wealthy collectors who have vast practical experience in promotion, gallery owners, can resort to it.
It is important for a private collector of modern painting or graphic art to have a developed artistic taste that will help highlight work that is a true masterpiece of fine art and will have maximum investment potential.
Trust in emotions when buying a painting
In the field of art, the emotional factor is one of the most important and determining. It seems to us that this is correct. No matter how attractive the picture is from an investment point of view, it should, first of all, cause an emotional response from the buyer. You take a certain risk when investing money in contemporary art, so the reward for this risk should be emotional satisfaction from owning this painting or other piece of art.
Speaking about the emotional side, it is important to emphasize that when buying a painting, you not only make an investment whose value will only increase over time, but also acquire, first of all, a beautiful thing that will delight your eye, decorate your interior, and emphasize the sophistication of your taste .