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Trading in financial markets involves significant risk of loss which can exceed deposits and may not be suitable for all investors.
Before trading, please ensure that you fully understand the risks involved
Trading in financial markets involves significant risk of loss which can exceed deposits and may not be suitable for all investors. Before trading, please ensure that you fully understand the risks involved

Saturday, June 01, 2019

The Art of Artistic Investing

by Century Financial in Investing

The Art of Artistic Investing

There’s plenty of scope for investment within the men’s luxury lifestyle space in the UAE. Many may choose watches, jewelry, or designer accessories to start their investment journeys. Sometimes, channeling resources into the property market often yields lucrative and reliable returns, while risk-takers might choose the  excitement of the stock market.

But what of investment in art? Of course, creative investments have an air of subjectivity. But there’s an easy way to dip your toe into the art scene.

Investing vs. Spending

There exists a basic yet important difference between spending and investing. When we make an investment,we do so with the expectation that the commodity’s value will increase in the future. When we spend on an item,it’s for sheer momentary pleasure, and future value doesn’t matter so much.

This premise stands true when you are looking to buy artwork as an investment. Whilst it’s important to choose art that you actually appreciate on an aesthetic level, give due consideration to its value over time. Invest, rather than spend.

Embarking on the Artistic Investment Journey

There’s absolutely no requirement to go for a Picasso when investing in art. Unless budget permits, of course, but for mere mortals, the artistic investment journey depends on thorough planning, realistic expectations, and creative thinking.

Setting the Budget

Like any new category of investment, it’s a good idea to start with a small, manageable budget. Don’t invest any more than you’re prepared to lose.

As you diversify your portfolio, you’ll form buffers that can absorb temporary downturns in the value of your investments. If the stock market is a turbulent maelstrom, art is a sea of calm. Artistic investments tend not to meander in value as often as other categories; you can be confident that, even if a piece of artwork temporarily adjusts your portfolio’s value downward, the long-term prospects are favorable. Your portfolio will therefore only need to absorb a loss for a brief period, while the value naturally settles and recalibrates to a trend of sustained growth.

Select a budget that your current portfolio can comfortably manage. A modest investment can help you to decide whether artwork is a goodfit for your long-term wealth strategy, without having to gamble substantial amounts.

Doing  Your Research

Art is subjective, and it could be argued that managing an investment portfolio requires a creative flair. But it always helps to be informed. It may be tempting to walk straight into a gallery, find a painting you can tolerate, part ways with your cash, and wait for your investment to grow.

Unfortunately, it’s not quite that easy. Consider how you would go about investing in a company. You would show diligence in researching the market, current trends, future projections, and rising stars.

The same principle applies to investment in art. Find out what the market is saying, speak with the experts, and spend time as an observer in the art scene before you make a commitment to it.

You’ll likely find that original pieces by well-known artists are outside of your budget, while affordable pieces by emerging artists don’t hold an optimal projection of long-term value. The challenge is to find a compromise. This is where you can begin to think outside of the box.

The Low-Risk Art Investment

Investment is all about balancing risk and reward. For new entrants to the art market, there’s an accessible, low-risk alternative to original pieces.

Serigraphs, lithographs, and digital prints are three different way to create copies of original masterpieces. Don’t let the word put you off; copies are not fraudulent. Rather, they are authentic replicas that are bought and sold through studios and auction houses, just like original work.

While you may choose to buy authentic digital prints of artwork for decoration, note that their abundance means they rarely hold future value.Lithographs are an improvement, but still do not present an ideal investment opportunity.

Serigraph Prints

Serigraphs are your best bet. They’re created using a precise silk screen technique, with each layer given time to dry and mature. As the color profile builds, a little at a time, a new version of the original is slowly revealed. The process can take six months to complete; as such, the end product is a high-quality replica – the closest form of print to the original.

Serigraphs hold value not only due to quality, but direct involvement of the original artist, who oversees the entire process. Most are signed and individually numbered, creating scarcity, and so, value – which usually increases over time.

When considering artistic investment, it’s not unreasonable to balk at the idea of replicas. However, high-quality serigraphs could be the ideal medium with which to test the waters. Good luck!

Now that I have equipped you with the knowledge on where to start from, you may start your own journey here on and may the luck be on your side as you explore the amazing world of Artistic Investing. Being in the business of Financial Markets, it doesn’t suit me to end any article even slightly related to investing money without a disclaimer. So here it is

Investing in art does not come without risk. None of the artists or artworks mentioned here are deemed to be an advise on behalf of the author. You are advised to thoroughly research, study and understand the market and risks involved before starting to invest in art. It’s always advisable to check the authenticity of the source you buy anything and check for copyrights on the artwork that you are buying. Though numerous dealers offer services online, it’s highly recommended that you see the artwork in original before making any payments.It’s also highly recommended that you buy something you relate to, would love to keep for years to come and would enjoy the feeling of having it as part of your collection. Lastly and most importantly, past performance is not guarantee of future performance (pun intended).

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