Investing in art

Investing in works of art is one of the most pleasant forms of investing. In order to be successful, we recommend you familiarize yourself with a few guidelines and rules by which the art market operates.

Advice for first-time investors in the art market

1/ Invest in the best work of art you can afford.

Try to invest in high-class works of a well-known artist as they are sure to maintain their value if there is a slump on the market.

2/ Invest in signed works.

It is much easier to sell them on. It is favourable if the work is accompanied by a certificate.

3/ Invest in a work with known provenance.

The history of a work, its documentation and catalogue references are a great asset which lift the value of the work at the moment of sale.

4/ Invest in a work in good condition.

The value of a piece which has not been renovated is much higher.

5/ Maintain the piece in excellent condition.

It's worth familiarising yourself with the principles of displaying and preserving the pieces so that their value does not unnecessarily depreciate in value. Any interference in the piece may only be carried out by a specialised restorer!

6/ Invest in 'typical' works.

If you are thinking of purchasing a work by for example Picasso, invest in a work characteristic and recognizable for his style. An original, untypical work by Picasso undoubtedly has a value for collectors, but the offered price may disappoint us when we come to sell it. The value of a work typical for an artist may be even one thousand times higher than that for an unconventional piece!

7/ Do not invest when the price of a work is at its peak.

If the world is today besotted with the work of Damien Hirst and Polish collectors are prepared to pay huge amounts for e.g. Nowosielski, keep your cool and sit out the spectacular record sums in order to calmly evaluate the value of the work in a few months or even years.

8/ Be sensitive to trends.

In order to understand the principles of the market and to invest consciously, you need to have some knowledge of the characteristics of the market, current trends and prognoses. You can do this yourself by following auctions and reading annual auction house lists and trade journals or you can commission a professional expert to do this for you.

5 basic principles worth remembering:

1. Investments in the art market are long-term (min. 5 years).
2. Art of past centuries is the most stable sector of the art market.
3. Works of art by deceased artists ensure a constantly diminishing supply and subsequent rise in their demand.
4. The biggest, most spectacular profits may arise from contemporary art pieces, but investing in this sector carries a considerable risk.
5. Investment portfolio diversification is recommended. It is worth setting aside around 10% for investments in works of art.