HOW TO INVEST IN ART ON A BUDGET

What do you do if you want to invest in art, but you have a budget of £10,000 or less? Contrary to what many would have you believe,  you do not need to have millions in savings to invest in art. In fact, there are several ways you can start collecting art without breaking the bank. We’ve listed some for you below. 
 

Purchase an Artwork by a Contemporary, Cutting-Edge Artist

If you’re looking to purchase a piece of art for less than £10,000, you might want to look at some promising artists who have not yet gained significant attention within the mainstream market. A great way to find these artists is through art galleries, art fairs  or online marketplaces including London Trade Art. 

 

It’s important to research the artist’s previous exhibitions, residencies, awards and collectors, both institutional and private, to get a better understanding of their potential. The more international exhibitions they’ve participated in, the higher their potential. 

 

 If you’d like to learn more about how to research an artist’s background, check out our ABCs of Art Evaluation

 

Laura Santamaria, Blue (Series of Pluto’s surface), 2019, Pigments and minerals on paper, 42 x 29.7 cm

 

Purchase a Limited-Edition Print, Etching or Drawing by a Well-Known Artist

If you’d like to own a work by a major artist, then purchasing a collectible print or multiple is the most affordable option. Limited-edition prints and multiples can range from a series of two to thousands. 

 

As you may not be the first owner of the work, you need to first and foremost make sure that its condition is pristine, in order to secure your investment. If you buy them from a trusted seller, you can trace their origins and trust their source. 

 

One reason to invest in a print or multiple is that it is quite low in risk. Prices of edition remain fairly stable, as they trade with relative frequency in the market. Erica Samuels, an independent art advisor at Samuels Creative & Co., stresses the importance of research when it comes to selecting a print, and while she understands that many prefer to own canvases, artists are often creating the same things on paper (CNN, ‘The right way to add art to your investment portfolio’).       

 

"There are some artists who are very expensive but their drawings are much less... Buy the drawing, enjoy it, let it’s value change. Then trade up." - Erica Samuels, as quoted in CNN, ‘The right way to add art to your investment portfolio’. 

 

You can also find prints and multiples through online marketplaces such as London Trade Art. Browse our selection here.  

 

Pablo Picasso, ‘Greeting card for Madoura Gallery’, 1966, Signed and Dated in the Plate and Hand Numbered Linocut on Wove Paper
 

Take Part in an Art Fund

Over the past few decades, participating in art funds has been increasing in popularity. While some funds such as Philip Hoffman’s The Fine Art Fund Group require quite a large sum as a minimum investment, others such as Arthena have a minimum investment of just $10,000. 

 

If you’re thinking of investing in the long-term, this could be a good option for you. Investment horizons with art funds can be between three to ten years. You can also choose an art fund to suit your preferred art historical period, such as Old Masters or Contemporary Art. 

 

Art funds provide several art investment opportunities, including long-term and short-term co-investment solutions, which generate capital appreciation through investment and trading in the art market. The advantage of opting for an art fund is that it has the lowest barrier for entry and you avoid having to struggle with any sort of logistics.  

 

Become a Fractional Owner of an Artwork

If you prefer to become a co-owner of an artworks rather than being an investor in a fund, then the fractional ownership model could be the right choice for you. With this model, you are also able to exit your investment whenever you wish. 

 

Investing in blue-chip artworks has long been reserved for the very rich. However, thanks to the new model of fractional ownership, it is becoming more and more accessible. If you dream of owning, for example, a famous Picasso but simply do not have the budget to buy it outright, you can now buy art shares, owning a fraction or certain percentage of the artwork. Through this, you are able to hop on the art investment ladder, partially owning an artwork through shares that you can then increase or sell, having the ability to digitally track your investment. 

 

That said, fractional ownership doesn’t always have to apply to blue-chip artworks. You can also co-own a work by cutting-edge contemporary artists, such as the service provided by London Trade Art, even benefitting from the temporary holding, among other benefits. 

 

Lapo Simeoni, 25.000 euro

 

If you want to learn more about the advantages of fractional ownership, you can find more information here.


In conclusion, there are many ways to start investing in art. If you’d prefer to purchase a work outright, then have a look at cutting-edge artists or prints by famous artists. Otherwise, if you prefer to not have to worry about logistics and maintenance costs, purchasing art shares might be a more suitable option for you. Whatever you choose, don’t let your budget hold you back. If art is your passion, then it will always be worth the investment. 

 

Aurelia Clavien - September 2020

 


Sources:

 

Anna Bahney, CNN Business, ‘The right way to add art to your investment portfolio’, 2018, https://edition.cnn.com/2018/09/30/success/art-invest/index.html

 

Madelaine D'Angelo, ‘How to Invest in Art on A Budget’, 2017, https://medium.com/@madelaine_arthena/how-to-invest-in-art-on-a-budget-f0c97acba250

 

The Guardian, How to Start an Art Collection with $1,000 or Less’, https://www.theguardian.com/culture/2013/oct/14/how-to-start-art-collection 


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