Buying Art for Investment ?

AnSionnachGlic · 2023-03-27T19:57:26+00:00

I luckily have 20,000 e, which I would like to buy a painting or work of Art. It is largely an investment but obviously want something that will appreciate over next 5 - 10 years. Can anyone suggest an artist that is a good investment at moment?

TomatoSandwiches · 27/03/2023 21:00

The art world is quite fickle, I would not recommend it for investment purposes unless you actively work within that field and have connections.

Buy art that you like but unless you met the requirements above never expect a high yield return.

determinedtomakethiswork · 27/03/2023 23:08

I wouldn't do this. For one thing it could be damaged quite easily and then everything is lost.

Flandango · 28/03/2023 09:54

Unless you really really know what you are doing don't do this. The cost of buying and selling art is high, the art world is full of shady characters, the value of art is based purely on the tastes and fashions of the day.

How would you know you have bought at a good price? How could you be sure that the piece you have bought will appreciate?

If you want to buy a decent artwork for £20k go ahead. But don't think of it as an investment. If it goes up in value, then great. Otherwise enjoy it hanging on your wall

Original poster

AnSionnachGlic · 28/03/2023 13:12

Thank you all for your replies. My overall reason for buying is for personal enjoyment, but it would be good if it appreciated, but it's not my primary motivation. I have purchased a signed Dali art work from the Dali gallery in Paris, with all relevant documentation. I really enjoy looking at it but do expect it to hold it's value.

OP posts:

Codlingmoths · 28/03/2023 13:15

No idea, but you want to make sure there is a secondary market for that artist. And insure it.

parietal · 28/03/2023 22:17

people who buy art as an investment have $millions already in other investments, this is just a bonus. they buy things and then lock them away in a secure warehouse where no one can see it. not sure of the point of that.

buy art because you love the piece and want to see it on your wall everyday. buy 20 small pieces (£1,000 each) and you'll have more chance that one or two of them go up to £10,000. And you also get to enjoy them.

parietal · 28/03/2023 22:18

Also, look at the AffordableArtFair for up-and-coming artists

Artinsurance · 28/03/2023 22:23

I’d only buy a piece if I loved it with no real expectation that it would appreciate in value. That being said, I did buy a Damien Hirst that I do like but I will happily sell if I need to boost my pension fund in later life.

Littleloveydovey · 28/03/2023 22:24

if you think mumsnet is the place to advise on fine art then you probably shouldn’t be considering this. I’d advise you consider auction houses like sothebys or Christies. If you don’t know what you’re doing then you need to get proper advice.

JesusMaryAndJosephAndTheWeeDon · 05/04/2023 11:53

I wouldn't advise buying art on the basis that it will appreciate. It is incredibly risky.

We own quite a lot of original art but have no expectation of it making us money.

If you want something that might appreciate an artist in whom there is interest beyond their artistic talent might appear a safe bet, but remember that much of the value of the art is tied up in their fame/infamy/reputation.

My neighbour owns some very expensive art that he bought for a decent price but it appreciated as the artist's profile rose and when they did a portrait of the Queen from life. Unfortunately the artist was Rolf Harris and they are now worth very little. He can't sell them and no longer wants to display them.

Ambernectarine22 · 22/04/2023 19:25

I’ve worked in the art world (auctions and art galleries) for decades and agree wholeheartedly with previous posters who cautioned you against investing in art. Most people do not make money from it. Anyone who tries to sell an artist as “the next big thing” is talking rubbish. If I were you I’d spend 1,000 on a picture you like and invest the rest in a conventional way. Bear in mind you will get way better value if you buy at auction, rather than from a dealer or art gallery. An auction is the ultimate free market, where a commodity finds its own price. Dealers buy at auction then sell things on when they’ve added a profit margin (which can be vast). Galleries also charge a huge mark up. They can take 60 percent of the asking price, leaving the artist 40 percent.

alwaysmovingforwards · 24/04/2023 20:08

Ambernectarine22 · 22/04/2023 19:25

I’ve worked in the art world (auctions and art galleries) for decades and agree wholeheartedly with previous posters who cautioned you against investing in art. Most people do not make money from it. Anyone who tries to sell an artist as “the next big thing” is talking rubbish. If I were you I’d spend 1,000 on a picture you like and invest the rest in a conventional way. Bear in mind you will get way better value if you buy at auction, rather than from a dealer or art gallery. An auction is the ultimate free market, where a commodity finds its own price. Dealers buy at auction then sell things on when they’ve added a profit margin (which can be vast). Galleries also charge a huge mark up. They can take 60 percent of the asking price, leaving the artist 40 percent.

Agree with this.
OP, if that price you like for £20k is from a retailer seller, it's trade price to sell is less than £10k.
So it would have to double in market value before you'll break even if / when you sell it.

Ambernectarine22 · 24/04/2023 20:32

@alwaysmovingforwards - It's even less than that, I'm afraid. Way, way, way less. And some galleries will tell you they'll buy it back from you - but that does not happen. The art market has never been more unpredictable than it is at the moment.