by C.E. Evans

Created on: May 13, 2009

Does the stock market have you stumped? Does real estate make you really stressed? Are you looking for alternate ways to invest your hard-earned money, but not sure where to start? With a little information, art investment can be a great choice for those looking to get a return on their dollar by less traditional means.

You already know what you visually like and dislike, which is the first tip to investing wisely in artwork: buy art because you like it. You should invest your money in pieces that are pleasing to you, rather than pieces you hate but have been told will soon be worth much more than you paid. Art is one of few investments that can and should be enjoyed during the investment period.

So you know what you like, the next step is where to find it? Research reputable galleries and auction houses in your area, find a few that market art that appeals to you, and make a point of visiting often. Search national and local arts magazines and publications, as well as the arts section of the newspaper to learn about shows or sales you may be interested in. Consult every source you can get your hands on to find out where your dealer is getting work from, that you are being charged fairly per market value in your area, and that the work original and in good condition. If you're still unsure, check with local art conservators, consultants, or appraisers, who will have a good idea of reputable sources.

Now that you know where to buy, you need to know how to gauge the potential of an artist or a specific work. It's not a bad idea to review the Principles of Art and the Elements of Art to give yourself a starting point for the things quality artwork should include, and you'll feel more comfortable using correct terminology when speaking to others. On that note, when you are at a gallery or show speak with everyone you can while you are learning, because hearing from a wide variety of people will help. Talk to the artist to find out how the art was created, or the motivation behind it. Speak with the gallery owner or the artist's agent if present, as both will often be more than glad to boast about how well the artist is doing, how well the pieces are selling, or what a following he or she has. All of this will give you an idea of how well the artist is being marketed and the amount of interest in the work, which will ultimately affect the work's value. Chat with other people browsing to get an idea of local interest, or what other artists or shows they like that you may also be interested in. Often fresh, local artists will have pieces starting in a lower price range than well-established, or nationally known artists. It's ok to start off with promising looking, but not yet well known art work if you keep in mind that you are likely to have a decent appreciation in value if the art is being marketed well, others are interested in buying it, and if the art was produced in fairly small amounts. Like in other aspects of the market, low supply with high demand makes for greater value.

Finally, when you've found a piece, keep "its keep" in mind. Don't forget, especially if you've invested more than a couple hundred dollars in a piece, to have it insured. Most homeowner or renters policies should offer coverage for a piece kept in your living space. Know how to take care of it to maintain its value. Never hang fine art in direct sunlight, get it wet, or try to clean it with abrasives or chemicals. If cleaning or repair is ever needed, leave it to a professional.

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