Smart investing in fine art

When you consider making an investment, there are several considerations to keep in mind. Basic questions such as how much you should invest, what are the expected returns on the investment and what is the time frame for the returns, in addition to what should you sell to invest, are top of the list. Most importantly, what are your goals for investing? Often people look at these considerations in regards to financial investments, such as stocks and bonds, however, the same criteria apply to fine art investments. In some instances, fine art outperforms traditional financial market investments.

HOLISTIC WEALTH MANAGEMENT
While most wealth managers can be proficient in helping clients invest in financial markets, it is recommended to work with a wealth advisor who includes real asset management, such as fine art or collectibles that appreciate in value over time. Wealth Managers such as Andy Chong, CFA at Highline Wealth Partners, https://www.highlinewp.com, utilizes a comprehensive approach in identifying all assets, including financial assets, real assets and fine arts, on your personal or family balance sheet to match your investments with your life goals and aspirations for a fully customized, truly holistic wealth plan.
 
WHERE TO START
The appraisers’ definition of what is considered fine art is usually a piece of art worth at least $5,000. If you want to build a fine art collection, the minimum investment is $5,000 per artwork. If your budget for fine art is above $50,000, you are well positioned to start a fine art collection. My advice to investors is to think about the type of art they enjoy the most, then find a piece, or several pieces, that fit your budget. Finding a good investment can be overwhelming, and working with an art consultant can provide the expertise to help you navigate the gallery and fine art auction world.

BUILDING A FINE ART COLLECTION
Whether it is a personal collection or investments for future appreciation, fine art and collectibles should be taken into consideration in your overall asset base.  After you have established your goals and a budget, a fine art consultant is key to finding investments that will hold their value and increase over time. Beyond simply having a good eye, an art consultant should be highly knowledgable about the artworks, artist and art market of works that they recommend. A good art consultant will help hone your preferences and find strong investments that will perform well over time and also add pleasure to your daily life as part of your collection. Several galleries, such as Artsy (https://www.artsy.net), are online and the big auction houses have also made auctions available online. Keep in mind that if you are purchasing or selling fine art at an auction house, transaction fees need to be taken into account. Fees vary between auction houses, and there is no set industry standard.

WHY YOU NEED AN APPRAISAL
An appraisal is essential to verify the value of an artwork before you purchase it, and is also required to insure your investment. Appraisers often work closely with art consultants, and sometimes we are the same people.
If you have any questions about building or stewarding  your fine art collection, please contact us at Drishti LLC Appraisers, https://www.drishtillc.com.