For the picture you bought a few years ago, what does this mean? Even if it increases in value, it may not be worth more than your kid's pasta-stuffed art creation. So, how do you know for sure? As with any investment, you should do your homework and stretch yourself beyond what you're used to. There are no assurances of profit in the art market, but if you do your homework and plan ahead, you may fill your house with works of art that may turn out to be valuable on the road.

Original Concepts: Paintings and Giclées

Your heart is set on an expensive picture, but you can't justify spending so much on it. The artist's work may be yours for just $500, and the gallery owner tells you it's an original piece. However, it's still a ripoff. For this reason, an original work of art will always command a higher price than a copy. Even though a giclée may be branded "archival" or "museum quality," it will never be as valuable as an original piece of art.

Images and Posters: Prints and Posters

Currier & Ives' mass-produced prints introduced art into Americans' homes in the mid-19th century. A quarter of American homes were adorned with Maxfield Parrish prints in the first half of the 20th century. 1

To this day, posters of these photographs are offered in shopping centers and museums. Posters and giclées allow you to own a piece of art, but a fine art print, such as a silkscreen, lithograph, or block print, is something entirely else.

Even without a loupe or magnifying lens, you can usually distinguish between an artist's print and a poster. A little dot matrix on the paper due to offset printing: A comic book or a Roy Lichtenstein artwork with its exaggerated splotches of color comes to mind.

Ship-to-Ship Art Auctions

Exactly what it sounds like, a cruise art auction is a floating exhibition and sale of artworks of all kinds. The cruise auction may appear to be a gold mine for potential art investors due to the abundance of well-known artist prints, drawings, and paintings, all of which are accompanied by certifications of authenticity.

It may seem like you've landed in an investment utopia for a brief moment. Even if the artwork sold at these auctions is authentic, it does not guarantee a profit. Cruise auctions are based on the belief that purchasers place a high value on authentic items. Even if a piece is accurate, it doesn't always mean it's rare or significant in art.

Selling Your Art Collection

Many people who acquire paintings don't go on to sell them distorts art price samples. In most cases, the owner of a painting believes the art will fetch a high price at auction. Over 40% of art resales are reflected in auction prices, and some experts believe that just 0.5% of artworks purchased are ever resold.

A fine art auction company is your best bet if you've got a real treasure on your wall and are ready to sell it reasonably. Fine art auction houses usually charge between 5 percent and 25 percent of the sale price of your work. In general, the online auction sites for do-it-yourselfers get significantly less money.

Investing in the Arts: Final Tips

Galleries will try to convince you that buying art is an emotional decision, but if you're looking at it as an investment, don't believe them. Look into any living artists you find interesting. Please find information about their training, jobs, and exhibitions.

Be on the lookout for the next generation of artists in your area by visiting museums, galleries, and art organizations. If you're thinking of purchasing a work by a well-known artist, consider getting it appraised beforehand. Don't buy anything if it's in horrible shape; quality is more important.

Are Fine Arts Investments a Good Idea?

It is possible to make money by purchasing fine art, but it is also a dangerous business. An art investor cannot be confident of the future worth of the art they are purchasing because it is not guaranteed that all art will rise in value. Art that is rare and especially if it is an original item rather than a reproduction, is more expensive. Timing is always a consideration when it comes to art and artists. Additional expenses like storage, insurance, and commissions must also be considered when purchasing art.

The Verdict

Investing in art can be a lovely addition to your house and a smart financial move for those who have the money. You may increase the value of your investment by focusing on original works and uncommon goods and ensuring you don't sell during economic downturns.