It might come as a surprise, but many art collectors do not necessarily buy and sell art because they are fans of the creative process. In many cases, art collectors are individuals who diversify their investments, and art is another asset class that needs the right focus and attention. In some cases, those who love the investment more than the art tends to make smarter decisions overall.
That said, whether you happen to love art or are simply doing so as a smart investment, there are ways to help keep the risk as low as possible when making a purchase. After all, it can be easy for inexperienced collectors to end up paying quite a bit more than they should. Consider the tips below when purchasing emerging art!
When purchasing art in the auction house
Some collectors appreciate the hectic nature of the auction, especially when people get caught up bidding for certain pieces. There are even some that might try to outbid their competitors simply to raise the price and have their competitor purchase the piece for an over-inflated price tag. First and foremost, when visiting the auction house, it is crucial not to get carried away.
Even if you know that the work on display would greatly benefit you as a collector, if there are too many bidders, it might be best not to push too hard. It would also be wise to keep in mind that there is a buyer’s premium that can add an extra amount to the final bid, so be prepared to pay more than the final bid.
When purchasing art in the gallery
One of the best parts about art galleries is they have a habit of working directly with artists, especially with new emerging artists that are making waves within the industry. Considering the size of the gallery, you could end up spending more than you might in the auction house, but the former at least has a more relaxed environment. You don’t have to worry about time constraints, allowing you to learn all you can about the pieces and the emerging artists before coming to a decision.
When purchasing art online
It comes as no surprise that online purchases of emerging art are as popular as they ever have been — especially with the rise of the pandemic. In such cases, you might even get rid of the costs that come with galleries and auction houses, though the risk of being scammed is much higher. In such cases, sufficient research is necessary. It would be best to go for online sources with the most positive reviews and testimonials, as there is no reason to amplify risk by going for dodgy websites.
Whether you are interested in an auction house, gallery, or online art sources, some advantages and disadvantages come with every choice. The tips above ensure that you will not be blindsided no matter your decision. So long as you take your time and ensure you do enough research, you can lower the risk that comes with investing in emerging art.