Art should be an investment made from the heart, yet objective knowledge is always optimal to ensure a sound result for your money. There are many considerations when investing in this market. You can approach your investment by genre, which is style of art, or from the perspective of appreciation, more likely in certain mediums or by measuring availability, trends, cultural value or antiquity.
There are brokers who are able to guide you through this labyrinth of possibilities. Christie's and Sotheby's, two reknowned auction houses, have many resources and advisors, with catalogs and references available online. Both firms have branches worldwide, with appraisers who will travel to your location if needed. Also, many brokerage houses have educated their staff to handle corporate and private art collections. Smith-Barney is just one of these that comes to mind. Art is definitely a commodity!
Successful investors have been know to hire their own buyers, credentialed experts, as well as going it on their own. You can find information from libraries, museums, art institutions and colleges. Ask around, follow your interests, become an expert about what interests you. Then the shopping begins.
This type of buying will vary tremendously, depending on what kind of art you are pursuing. Ethnic and folk art are best bought from the source, or find auctions of antiques in regions that relate to the source. Some wonderful buys are found by secondary sources, such as items brought back by missionaries, or inherited items. Look for ethnic neighborhoods, pawn shops and dealers. Antiques can be foud in the range from yard sales to upscale exclusive dealers. This is a huge field, with the hunt being part of the fun for many serious collectors. Fine arts are always best bought directly from the artists, saving you the commissions of galleries and dealers, often 40-60% of the price. There are many online sources and directories for this possibility. Attend shows and receptions, discover your local artists. Look for what you like, especially if you will be living with this item. Short of giving you Art Appreciation 101, let it be said that you can tell quality work by the overall impression of quality - surface; condition; aesthetically pleasing or meaningful image; durable materials such as good stretched canvas or linen and hardwood stretchers or classically proven methods of production; craftsmanship; etc. Paintings should be signed. Prints should be signed and numbered.
If you want to venture into the gallery scene, look for well-presented, reputable dealers who have been in business for some time, with a storefront and professional accoutrements. The four biggest gallery scenes in the USA are Los Angeles, Santa Fe, NYC and Dallas. Any large urban area will have an artsy area, with many small towns know for their art colonies. Atlanta, San Francisco, Chicago and Philadelphia are close behind in the big sales, with places like Berkeley Springs, WV and Taos, NM in the latter category of small towns. There are also co-op galleries, where artists work together to create their own outlet. These can be fine, too. Individual artists' websites and studios should offer competitive payment plans, receipts, guaranteed delivery, and general business-like safeguards.
High-dollar investing should be more than just speculation. There are many trends to follow. You can read the New York Times and the many art magazines to see what's the latest, including what the museums are featuring. Very often the market prices and stylistic trends reflect the current big shows at the nationally and internationally prominent museums. Once, again, this is a tremendously varied field, and you must pick and choose what you like and have an interest in studying.
Travel and education help narrow down your vision for art collecting and investing, but you can focus on many motives, from buying a rare type of technique to Outsider Art to the best of the best known works of your favorite artist. The stakes get higher, of course, as you aspire to buying known artists or the most rare of works. Ultimately, buy something that is creative and of individual note. The more original, the more significant the work becomes. Art is a great investment. Art endures because humanity needs art to keep us human.