Buying Art – for the financially rational minded
Above all, art is a personal choice. For those who want to know the best time to buy, this article answers the question:
How do you make $1,000,000 from art assets?
Million dollar artworks are no longer unusual*. But how do you make a million dollars buying & selling art? It’s the age old rule of any type of investment –
buy LOW and sell HIGH.
The problem with art is that you need to know about the artist before they become famous. That’s a little bit tricky. If you knew Modern Artist Damien Hurst and purchased his Dots work you could expect to sell them on the market today for $53,000 to $1.3 million.
As an investor, it’s about timing, so too for art investing. When an artist moves from one stage to the next, the value of the art asset appreciates. The best situation is to invest just prior to an artist’s move from proven and undiscovered to proven and discovered.
What’s Proven: an artist that exhibitions in multiple countries, and has been exhibited in top galleries or museums
Discovered: More and more people come across the artist and they buy. In economic terms, demand exceeds supply
So, when is a good time to buy?
Obviously when an artist is Unproven there is low investment value and the potential for art asset appreciation is nil. You might be waiting awhile for a good return.
Proven but Undiscovered is the best investment value because the potential for art asset appreciation is at it’s highest. The artist is climbing and just like with a stock, you want to buy on the way up. It’s like getting the pre-IPO price on a share.
Proven and Discovered is not as good of an investment because you’ve lost the timing and may be purchasing the art asset at Post IPO valuations.
Booth Aster’s artworks have been exhibited and purchased in Germany, Spain, the USA and Singapore. They’ve been showcased at the Museum of Art and Design and the Art Sciences Museum. (PROVEN)
And now with July’s TEDxArtist-In-Residence out with the world’s attention, discovery is just around the corner.
Sounds like the right time to buy, doesn’t it?
As an investor, art is an under-represented asset class in most investment portfolios. According to Deloittes (2012) there is a growing recognition of art as an investment asset class by investors. And as we all know, art is an appreciating asset over time that can be enjoyed a lot longer than Chateau Laffite.
Three Affordable Art Assets currently available from Booth Aster
For those looking for investment grade art assets above $100,000, contact Booth Aster via email for a confidential discussion at booth[at]boothaster.com.
Get Your Art Asset before Booth Aster is discovered and the assets price goes up.
*Here is a list of artists who regularly sell for well over a million in the UK.
https://news.artnet.com/market/top-10-british-artists-now-812858. Three are women doing over a million a work which is encouraging.