Collectors often ask themselves a question: how do you know if an artist is a good investment? It is a key question when it comes to investing in fine arts. Several factors must be taken into account.
One of the main ones is the choice of the artist itself.
You need to know how to distinguish between an established artist, who usually guarantees a stable investment or an emerging artist with long-term growth potential.
In today's article, I want to give you some practical tips that will increase the probability that your fine arts investment will succeed.
Invest in established or emerging artists
The first step is to choose what type of artists you are going to invest in. To make an informed decision you must take into account the following:
Risk and reward. Investing in emerging artists carries more risk, but this creates the potential for higher returns in the long run. While an established artist is a safe investment, but with less growth potential. You have to take this into account.
Diversification of your art portfolio. Having a good mix between emerging and established artists and works is not a bad idea. Diversification helps reduce risk. By spreading your investment across different works and artists, you can increase the stability of your investment and help you achieve your long-term investment goals. So a loss on an artwork is potentially offset by gains on another. In addition, diversification can also help you maximize returns by allowing you to take advantage of various growth opportunities.
On the other hand, you should also take into account:
Price history. An established artist's price history is easier to find and available in more places than an emerging artist's.
Demand. Demand for an established artist may be higher and more stable than for an emerging artist, which can make it more difficult to find and acquire one of their works.
Recognition. A consolidated artist has greater recognition among the public and collectors. This raises the value of the artwork and, therefore, what you should invest.
exhibition. Consolidated artists have greater exposure in museums and galleries than emerging ones, thus affecting not only the value of the work but also its appreciation potential.
After seeing all these points and having made your choice, the following will be…
Investigate the artist to find out if he has appreciation potential
For this, you must…
Know the biography of the artist
This will help you to have a more complete vision of your career and you will be able to evaluate its potential as an investment. In addition, you will learn about his artistic approach, his training, and his style and technique. The latter is vital to determine if your work will be valued over time.
Research the artist in the art market
Knowing how much demand an artist is in and how his works are moving in the market will give you a better idea of whether or not it is worth investing in his work.
Here it is important to know the fan base as well.
This will also give you information about the interest that the artist and his works generate in the public. If there are recognized collectors interested in getting one of their pieces.
Critical reception and accolades
An artist with multiple recognitions and awards can be a good investment, as this often indicates a high level of quality and appreciation for their work. If he doesn't have awards, because he's emerging, you can look at what critics say about his works.
To do this, you can look at specialized magazines, museums and galleries, because these have catalogs that include criticism and analysis of works of art.
You can also find reviews of an artist on specialized websites, as well as on the websites of fairs or exhibitions where the artist has performed.
When evaluating an artist you should know the frequency of their exhibitions, the variety of places where their art is exhibited, their participation in international events, as well as group exhibitions. This will give you an indication of his career stability and appreciation in the world of fine art.
For example, the frequency of exhibitions will tell you how active and stable the artist's career is. Also, if you see that it has participated in international events, this indicates that it has a global reach and recognition. Therefore, these are vital points when doing your research.
It is not only a matter of which galleries the artist has a presence in or if he has exclusive representation with any of them. It is also important to assess whether your work has been acquired by prominent museums or private collectors.
This helps solidify the artist's name and stabilize the prices of his work.
In addition, it is also important to know if the artist has an agent who is committed to their development. This representative will look for a way for the works of his artist to reach the best galleries and exhibitions, thus giving his work more value.
The rarity of the artist and his work
An artist's rarity refers to the number of artworks by that artist that exists, and the rarer they are, the more it is worth and the more appreciation potential it will have in the long run. Also, if the artist has a unique style and technique, they are more likely to have a valuable work due to its uniqueness.
Also, you must evaluate the rarity of its pieces. For example, a unique or limited edition piece by the artist can be worth much more than other similar pieces. Which, in the long run, will raise the price and the possible profits that you can obtain from your investment.
To know the history of sales and prices, it is best to go to an auction history. Finding this may seem difficult, but portals like Artnet and Artprice will help you a lot, as they collect information on art sales and provide historical sales prices of established artists. For emerging artists, you can visit their professional profile to see their auction history, many have a public sales history that you can review.
In addition, you can also go to art fairs where the artist has been presented and to the galleries where his work is exhibited. These places keep sales records that can help you in your research.
Remember, an artist with a strong and growing sales record is more likely to be a good long-term investment.
Historical importance or significance
There are several aspects to evaluate here. The first thing is the place of the artist in the history of art, his impact on society, his influence on other artists, and what place his work occupies in the history of art. By knowing this, you will be clearer if your investment has the growth potential you expect.
Investing in art like all the others has its risk. So before you put your money into art, research the artist. This will give you a better chance of making a good choice.