Invest in fine art, how much should you invest, part 2
Updated: Oct 9, 2019
Art is less sensitive to the economy.
Usually, artworks give a good return at resale and cultural enrichment for the buyer.
I advise requesting help from art experts who know the trends, what type of artwork is susceptible to give the best return. If you are an advanced amateur, of course, you can fly solo, and if you have lots of money, I advise you to work with a specialized fund.
Buying artwork for at least $ 25,000 will give a return of 5 to 8%.
An art expert will advise you to keep the art an average period of 12 years to obtain a return of 5 to 8 % yearly. In other words, you will double your invested money.
A $ 25,000 start investment is essential.
Artworks bought below $ 2000/3000 will rarely give you a return.
There are exceptions, of course, so the man in Belgium, to help a friend who was on the verge of bankruptcy, sold him a painting for $ 600, and discovers a decade later that the art is worth $ 30 million.
I assist investors who have available at least $ 1 million; returns are much more important in short term periods. We usually see over 3 to 4 years a profit of at least 50 % of the invested amount.
Which are the best media to buy art?
By far is an auction house, the one that shows the least risk.
Galleries and antique dealers are other sources to buy valuable artworks. But don't imagine that the gallerist or the dealer does not know what he has in his hands. Mistakes by the latter will be infrequent.
I will advise that you call an art expert to assist you before you buy in an auction or a gallery.
To be continued