{"id":10786,"date":"2022-01-13T11:56:49","date_gmt":"2022-01-13T16:56:49","guid":{"rendered":"https:\/\/www.artinsurancenow.com\/blog\/?p=10786"},"modified":"2022-02-02T13:42:53","modified_gmt":"2022-02-02T18:42:53","slug":"the-pros-and-cons-of-investing-in-fine-art","status":"publish","type":"post","link":"https:\/\/www.artinsurancenow.com\/blog\/the-pros-and-cons-of-investing-in-fine-art\/","title":{"rendered":"The Pros and Cons of Investing in Fine Art"},"content":{"rendered":"\n<p>Many investors are broadening their investment schemes by becoming active in various luxury markets in this day and age. Some choose to invest in wine, coins, even cattle. But&nbsp;<strong>the art world offers plenty of investment opportunities<\/strong>&nbsp;even for laymen and&nbsp;<a href=\"https:\/\/www.artinsurancenow.com\/blog\/beginners-guide-to-buying-valuable-art-4\/\" target=\"_blank\" rel=\"noreferrer noopener\">beginners who want to buy valuable artworks<\/a>. It is a common misconception that the art market is welcoming only for the affluent. Aside from personal appreciation and admiration fine art provokes in investors, there are many financial and practical benefits and drawbacks to investing in fine art. Here we will dissect what lies in store for you if you decide to become an art collector.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Should I invest in fine art?<\/h2>\n\n\n\n<p>Interestingly enough, many myths have put off \u2018ordinary people\u2019 from investing in art. The first concern is that you are at risk of becoming a victim of many scams, fakes, and rip-offs that lurk in the fine art market.&nbsp;<\/p>\n\n\n\n<p>Of course, this is not entirely unfounded. Yet, a crucial source of the rush and excitement of being an art investor lies in&nbsp;<strong>doing your research and trading with the right art galleries, brokers, curators, and artists.<\/strong>&nbsp;Furthermore, you can always protect your investment by&nbsp;<a href=\"https:\/\/www.artinsurancenow.com\/blog\/insurance-for-artwor\" target=\"_blank\" rel=\"noreferrer noopener\">insuring your fine art<\/a>&nbsp;collection.&nbsp;<\/p>\n\n\n\n<p>So, let\u2019s take a look at arguments for and against becoming an art collector in more detail.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Pros of Investing in Fine Art<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Blue-chip artworks are rarely subject to inflation<strong><\/strong><\/h3>\n\n\n\n<p>If you have never heard this term, blue-chip art means that the piece is attributed to acclaimed or world-famous artists like El Greco, Picasso, Van Gogh, Modigliani, etc. As mentioned before,\u00a0<strong>you have to do a fair amount of research if you plan to trade in blue-chip artworks.<\/strong>\u00a0Furthermore, you have to \u2018enter\u2019 the fine art world confidently to be successful at it.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-medium is-resized\"><a href=\"https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-una-laurencic-20967-scaled.jpg?ssl=1\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"10794\" data-permalink=\"https:\/\/www.artinsurancenow.com\/blog\/the-pros-and-cons-of-investing-in-fine-art\/pexels-una-laurencic-20967\/\" data-orig-file=\"https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-una-laurencic-20967-scaled.jpg?fit=2560%2C1707&amp;ssl=1\" data-orig-size=\"2560,1707\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"pexels-una-laurencic-20967\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;Blue-chip art refers to artworks made by acclaimed artists.&lt;\/p&gt;\n\" data-medium-file=\"https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-una-laurencic-20967-scaled.jpg?fit=300%2C200&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-una-laurencic-20967-scaled.jpg?fit=474%2C316&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-una-laurencic-20967.jpg?resize=474%2C316&#038;ssl=1\" alt=\"A woman sitting in an art gallery looking at paintings\" class=\"wp-image-10794\" width=\"474\" height=\"316\" srcset=\"https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-una-laurencic-20967-scaled.jpg?resize=300%2C200&amp;ssl=1 300w, https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-una-laurencic-20967-scaled.jpg?resize=1024%2C683&amp;ssl=1 1024w, https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-una-laurencic-20967-scaled.jpg?resize=768%2C512&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-una-laurencic-20967-scaled.jpg?resize=1536%2C1024&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-una-laurencic-20967-scaled.jpg?resize=2048%2C1365&amp;ssl=1 2048w, https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-una-laurencic-20967-scaled.jpg?w=948&amp;ssl=1 948w, https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-una-laurencic-20967-scaled.jpg?w=1422&amp;ssl=1 1422w\" sizes=\"(max-width: 474px) 100vw, 474px\" data-recalc-dims=\"1\" \/><\/a><figcaption>Blue-chip art refers to artworks made by acclaimed artists.<\/figcaption><\/figure><\/div>\n\n\n\n<p>But all the efforts will be more than worth the hassle. Blue-chip artworks are an excellent<strong>\u00a0hedge against inflation.<\/strong>\u00a0This is one of the primary reasons why trading art is so popular among the wealthy. Think of it this way. Investing in artworks is like investing in real estate. Or in other words, a valuable artwork is a tangible asset that is rarely subject to fluctuations on the stock market.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Supporting an emerging artist can be a good investment (if done right)<strong><\/strong><\/h3>\n\n\n\n<p>However, you may also support a promising artist and get the same financial reassurance. Just be mindful that the rise in appreciation and value of an art piece authored by an emerging artist may skyrocket for quite a while but also flatten out after some time.\u00a0Hence, it takes a lot of knowledge, interest, and commitment to\u00a0<strong>distinguish a great artist from an artist of the moment.\u00a0<\/strong>Also, the value of artworks belonging to different schools or art movements will increase at different rates.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-medium is-resized\"><a href=\"https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-steve-johnson-1292241-scaled.jpg?ssl=1\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"10795\" data-permalink=\"https:\/\/www.artinsurancenow.com\/blog\/the-pros-and-cons-of-investing-in-fine-art\/pexels-steve-johnson-1292241\/\" data-orig-file=\"https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-steve-johnson-1292241-scaled.jpg?fit=2560%2C1679&amp;ssl=1\" data-orig-size=\"2560,1679\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"pexels-steve-johnson-1292241\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-steve-johnson-1292241-scaled.jpg?fit=300%2C197&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-steve-johnson-1292241-scaled.jpg?fit=474%2C311&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-steve-johnson-1292241.jpg?resize=474%2C311&#038;ssl=1\" alt=\"An abstract painting.\" class=\"wp-image-10795\" width=\"474\" height=\"311\" srcset=\"https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-steve-johnson-1292241-scaled.jpg?resize=300%2C197&amp;ssl=1 300w, https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-steve-johnson-1292241-scaled.jpg?resize=1024%2C672&amp;ssl=1 1024w, https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-steve-johnson-1292241-scaled.jpg?resize=768%2C504&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-steve-johnson-1292241-scaled.jpg?resize=1536%2C1007&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-steve-johnson-1292241-scaled.jpg?resize=2048%2C1343&amp;ssl=1 2048w, https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-steve-johnson-1292241-scaled.jpg?w=948&amp;ssl=1 948w, https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-steve-johnson-1292241-scaled.jpg?w=1422&amp;ssl=1 1422w\" sizes=\"(max-width: 474px) 100vw, 474px\" data-recalc-dims=\"1\" \/><\/a><figcaption>Fine art can have value and be beautiful at the same time.<\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">You do not have to be rich to invest in fine art<strong><\/strong><\/h3>\n\n\n\n<p>Another misgiving is that trading art only makes sense if you are extremely rich. Starting from 2011, art investors saw anywhere from 11% to 14% return on investment. Admittedly, such a staggering increase resulted from China\u2019s attempt to purchase back its art heritage from the West.&nbsp;<\/p>\n\n\n\n<p>Nowadays, the potential return is not as high, but given that&nbsp;<strong>investing in fine art outperforms investing in equities,<\/strong>&nbsp;it is far from true that buying art makes sense only if you are wealthy. In fact, the value of fine art is highly stable. Even investing a few thousand dollars into a lesser-known but appreciated artist is highly likely to multiply once the artist attracts the art community\u2019s attention.&nbsp;<\/p>\n\n\n\n<p>So, you could go rogue and give a chance to a promising artist or some interesting old artifact. Your initial investment of, for example, $2,000 can easily jump to $10,000 if the said artist or cultural artifacts become trendy in the art world.&nbsp;<\/p>\n\n\n\n<p>Furthermore, moving the artwork from the gallery to your home is not as expensive as it used to be. Note that\u00a0<strong>moving a newly purchased piece of art is best handled by reliable fine art movers.<\/strong>\u00a0Nowadays, you can\u00a0<a href=\"https:\/\/www.capitalcitymovers.us\/fine-arts-movers-nyc\/\" target=\"_blank\" rel=\"noreferrer noopener\">work with experienced professionals<\/a>\u00a0and avoid losing your investments in case of transportation damages.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Cons of Investing in Fine Art<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">The return is high, but&nbsp;the&nbsp;risk is high as well<strong><\/strong><\/h3>\n\n\n\n<p>So, you can potentially earn<em>\u00a0a lot of money<\/em>\u00a0if you decide to join and trade in the high art society. However, unless you have stumbled upon a rare or blue-chip piece, you can never be too sure your investment will increase in value.\u00a0<\/p>\n\n\n\n<p>Sure, it happens that art investors suddenly become millionaires. Unfortunately, ending up with an unsellable artwork is a more realistic outcome. For example, conceptual and pop art are usually flashy and attractive to laymen entering the art market. And yes, these kinds of artworks can accumulate a lot of prestige. But, more often than not,\u00a0<strong>you are just taking a\u00a0chance with these kinds of pieces.<\/strong>\u00a0This is particularly true if the artist has not come into the limelight yet.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-karolina-grabowska-7283171-scaled.jpg?ssl=1\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"10796\" data-permalink=\"https:\/\/www.artinsurancenow.com\/blog\/the-pros-and-cons-of-investing-in-fine-art\/pexels-karolina-grabowska-7283171\/\" data-orig-file=\"https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-karolina-grabowska-7283171-scaled.jpg?fit=2560%2C1707&amp;ssl=1\" data-orig-size=\"2560,1707\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"pexels-karolina-grabowska-7283171\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-karolina-grabowska-7283171-scaled.jpg?fit=300%2C200&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-karolina-grabowska-7283171-scaled.jpg?fit=474%2C316&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-karolina-grabowska-7283171.jpg?resize=474%2C315&#038;ssl=1\" alt=\"A painting of a face\" class=\"wp-image-10796\" width=\"474\" height=\"315\" srcset=\"https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-karolina-grabowska-7283171-scaled.jpg?resize=1024%2C683&amp;ssl=1 1024w, https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-karolina-grabowska-7283171-scaled.jpg?resize=300%2C200&amp;ssl=1 300w, https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-karolina-grabowska-7283171-scaled.jpg?resize=768%2C512&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-karolina-grabowska-7283171-scaled.jpg?resize=1536%2C1024&amp;ssl=1 1536w, https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-karolina-grabowska-7283171-scaled.jpg?resize=2048%2C1365&amp;ssl=1 2048w, https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-karolina-grabowska-7283171-scaled.jpg?w=948&amp;ssl=1 948w, https:\/\/i0.wp.com\/www.artinsurancenow.com\/blog\/wp-content\/uploads\/2022\/01\/pexels-karolina-grabowska-7283171-scaled.jpg?w=1422&amp;ssl=1 1422w\" sizes=\"(max-width: 474px) 100vw, 474px\" data-recalc-dims=\"1\" \/><\/a><figcaption>Investing in an unacclaimed artist can be a gamble.<\/figcaption><\/figure><\/div>\n\n\n\n<p>When art dealers evaluate art, they do this based on the history of transactions that the given artist has had so far. So, depending on what\u2019s in vogue, the piece\u2019s value could either skyrocket or &#8211; not. This basically means that the appreciation for artworks of artists just stepping into the market is arbitrary.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">You&nbsp;cannot sell your artworks whenever you want<strong><\/strong><\/h3>\n\n\n\n<p>One of the biggest disadvantages to developing a fine art collection is that selling it takes time. You cannot sell a painting in a day or two. The entire process can become quite long and require a lot of effort on your or your curator\u2019s part. You have to contact auction houses, pay their commissions, pay additional fees when you sell the artwork, etc.<\/p>\n\n\n\n<p>This means that you cannot just \u2018flip\u2019 fine art whenever you feel like it. Also, if you sell too soon, you may even regret being hasty and selling the piece for less money. You may have to be patient and wait for the right moment to do so. However, the problem is that you can never be too sure if the right moment has come.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Storing fine art can be tricky<strong><\/strong><\/h3>\n\n\n\n<p>One of the major cons of investing in fine art is the lack of storage space or inappropriate storage conditions. If you live in a big city, your apartment can easily become overcrowded rather than embellished, thanks to your art collection. Furthermore, you need to make an effort and\u00a0<a href=\"https:\/\/www.artinsurancenow.com\/blog\/protecting-your-art-collection\/\" target=\"_blank\" rel=\"noreferrer noopener\">protect your art collection<\/a>\u00a0by keeping it in a suitable environment. Damp, hot air, or exposure to bright light can easily damage artwork. This means\u00a0<strong>you may have to shell out even more money for your artworks&#8217; proper storage and maintenance.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Many investors are broadening their investment schemes by becoming active in various luxury markets in this day and age. Some choose to invest in wine, coins, even cattle. But&nbsp;the art world offers plenty of investment opportunities&nbsp;even for laymen and&nbsp;beginners who want to buy valuable artworks. It is a common misconception that the art market is &hellip; <a href=\"https:\/\/www.artinsurancenow.com\/blog\/the-pros-and-cons-of-investing-in-fine-art\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">The Pros and Cons of Investing in Fine Art<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":5,"featured_media":10788,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[23,1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v18.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Pros and Cons of Investing in Fine Art - Protecting Art Nationwide | Art Insurance for Artists, Galleries &amp; Collectors from New York to California<\/title>\n<meta name=\"description\" content=\"Considering investing in fine art? 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