Learning About Art

Before you start spending money, you need to know what you are spending it on. While you don't need a degree in art to appreciate or invest in it, you should be familiar with the fundamentals. Reading a book on art history will better prepare you for dealing with the art world. Research various mediums of art, too. When most people think of buying art, they envision a painting to be hung on the wall. Paintings make great investments, but so do photographs, lithographs, sculptures, pottery, wood carvings, etc.

Another way to learn about art is to see it firsthand. Visit local museums and galleries, familiarize yourself with common art terms. The Internet can be another great source of information, particularly message boards for art collectors. While you are researching art, you will start to get an idea of what you like and don't like, which is quite important. After all, you probably won't be purchasing a piece of art only to turn around and sell it the next day; you will need to live with it.

Choosing Artwork to Buy

Here is an essential rule to abide by: always choose a piece of art that you appreciate. After all, you are dealing with aesthetics here, not a stock or bond. If your gut tells you that a particular work of art is worth investing in, then chances are that other buyers will, too. Also, you must prepare yourself for the fact that your art may take a long time to mature in value. In a worst case scenario, your art never increases in value at all... but you are still left with something decorative that you admire.

Always remember that you are not only investing in a particular piece of art, but in the artist who created it. If you are a first-time buyer without millions in the bank, then you really need to dash any thoughts of purchasing a well-known Picasso. Studies show that even if you did, you may not make a very huge return. Many classic pieces of art are being purchased for huge sums of money, in the hundreds of millions at times. Finding someone who will pay more down the road won't be easy for such investors. Instead, you should search for the next Picasso before he or she becomes famous.

Finding an up-and-coming artist involves research and some legwork. As a new art investor, you should start reading magazines and newspapers for tips on upcoming shows and young artists. If an artist is already overexposed, you may be too late. However, if you find a young talent that is just recently producing some buzz, then you may be onto something.

Avoiding Scams

Although this may all sound like the plot of a 1960's caper flick, art fraud is very real and increasingly common. There are many scams that unsuspecting buyers fall for. Prints, for example, can be forged quite easily with the help of modern technology. Many prints that claim to be "limited edition" are floating around on eBay, with the sellers even going so far as to type up a bogus "Certificate of Authenticity". We implore you, don't buy expensive pieces of art on eBay.

While eBay is rife with fraudulent art dealers, live auctions usually pose less risk. However, scams can occur in these settings, too. Some auction houses have been caught using "plants" in the bidding audience to help drive up the cost of an item. This is illegal and most common at less reputable auctions. The problem is, most of us can't afford to frequent Sotheby's. However, if the auction you are attending has full license to sell the items in question and have a good reputation, you will be in good hands.

One of the easiest ways to avoid fraud is to buy straight from the artist at his or her gallery showing. If that isn't possible, then minimize your risk by purchasing your art on the cheap. Don't go maxing out your credit card on your first buy; that could be disastrous. Like we said, find those artists while they are young and before they get famous. That's how the average Joe really makes money with art trading.

Preserving and Caring For Your Art

Buying reasonably priced artwork that later becomes highly sought is your goal. However, the worth of your art is not only dependent upon the art market, but on the condition of the piece when it is being sold. You need to preserve and maintain your artwork, be it a print, painting or sculpture. Each medium requires a different kind of maintenance and it is up to you to learn how to keep your art in mint condition. A damaged or aged piece may lose much or all of its value. This is where some more research comes in on your part. Learn where your particular kind of artwork should be stored, how to keep it looking new, etc. Prepare yourself for the fact that it may take more effort from you than the occasional dusting.

How to Sell Art

Like most investments, the value of your art will fluctuate. If you are considering selling your piece soon, have it appraised by a respected and qualified professional. On that note, never sell anything to the person who is appraising it. You can never be too careful, as even the most reputable appraiser could underbid you if you seem eager to sell. Instead, tell them you are merely curious for insurance purposes. That should yield you the most honest dollar figure.

Once you have an idea of what your art is worth, you can establish a minimum asking price. Whether you are selling your artwork in an auction or directly to a private collector, you need to have a minimum figure in your head. Auctions are best, although the auction house will retain a commission for selling your piece, so consider that when you set your price. However, an auction could result in more money for you, depending on who is attending and what the demand for this type of piece is at the moment. Remember, always sell to or through a reputable source. As you establish contacts through your art collecting, so will you get a good idea where your art should be sold.

Art collecting can be a profitable venture and a great way to diversify your investments. However, you should be mindful of the fluctuating art market, as well as the importance of preserving a piece in its original state. Scams are easily preventable with a little research and some common sense. With careful consideration, rational spending and a true appreciation for your collected works, then there is no reason why you would be disappointed with your art investment.