"Beauty is in the eye of the beholder"
Nowhere is this old adage more appropriate than in the world of fine art. A distinguishing feature that attracts one buyer to a particular work of art is just as likely to be the very thing that turns the next buyer away. To invest in art is to invest in an opinion of what constitutes beauty, which won't necessarily be the opinion of the masses, but certainly should be the opinion of the investor. Art, whether purchased as an investment or simply to brighten up a dull room, can only be fully appreciated if it is pleasing to the eyes of those who will be living with it every day.
An appreciation for and love of quality artwork is a definite advantage for anyone wanting to invest in such works. Time spent in the pursuit of that perfect first investment purchase will ideally involve many hours perusing art publications, galleries and exhibitions, as well as studying the field, talking with artists and curators and generally becoming entrenched in the art world. If the thought of spending a good deal of your spare time surrounded by art and artists is not overly appealing, then investing in art may not be for you. If that same thought sends a quiver of anticipation through your body, you may well be the type of person who will have at least a small measure of success with your investments.
Investments of any kind carry their associated risks. Companies fall to bad management, real estate prices take a nose-dive in times of economic hardship and we've all witnessed the fickleness of our world stock markets. Investing in art also carries an element of risk, but with its relatively small initial outlay in comparison to the potential for high returns, these risks are considerably less daunting than those inherent in the more traditional forms of investment.
The contemporary art market has boomed over the last decade. High quality art is more accessible to the general public today than it has ever been before. Where art galleries were once solely the domain of eccentric, arty types they are now a source of invaluable information given willingly by friendly and helpful staff. What this means for the beginner art investor is increased opportunity to gain a well rounded education in the finer points of art before making that initial investment.
Artist magazines provide a great resource for the art investor. These are monthly or bimonthly publications produced specifically for artists. They contain up to date information on diverse subjects ranging from the latest techniques in pastel painting to dates for upcoming exhibitions and art contests. Knowing the ins and outs of what is happening at the cutting edge of the art world is essential to keeping up with current trends. Attending a few of those listed exhibitions and art contests will be a beneficial experience too.
Contests are run annually as fundraisers by many special interest groups and sporting clubs. Artists pay a set fee per piece to enter the contest and most of these pieces will also be for sale at very reasonable prices. The club will often invite one or two accomplished artists to exhibit their work, take part in judging and maybe even donate one of their artworks to be raffled during the course of the contest. Chances are that the next Rembrandt is right at this moment putting the finishing touches on his first major work in preparation for entry into your local annual art contest, or not, but it doesn't hurt to take a look. More likely is the chance you will pick up a wonderful painting by a talented aspiring young artist at a bargain price.
There are no hard and fast rules when it comes to choosing a piece of art as an investment. The key to making a good choice is discovering your own personal likes and dislikes and putting them together with the knowledge you have garnered in your travels to form an idea of what will suit your taste and budget. Approximately 20 percent of all works of art sold consistently hold their value. Some of those steadily increase in value. A small percentage rise rapidly to produce returns many times over the original purchase price.
All the knowledge in the world won't guarantee that your art investment falls into that small lucrative category but a knowledgeable, well developed opinion of what constitutes beauty will guarantee you make the right choice for you. The worst that can happen is you wake up each morning to a work of art that is, in your eyes, a thing of beauty to behold.