Many investors, especially inexperienced ones, feel insecure in the art world. They do not dare to invest money in art objects because they may not understand much about it themselves or think that true art is beyond their financial reach.

However, art can be a very good investment and expand your portfolio, according to the motto, have many irons in the fire. In many respects, art is even less risky than paper investments such as shares. Unlike the stock market, an art object that will definitely increase in value is a safe investment and not a gamble. Art is affected little or not at all by economic crises.

Read on if you want to know more about the art of investing in art.

How much understanding of art is required

You don't need to be an art connoisseur or have a degree, but it is advisable that you acquire a basic knowledge before you buy an art object. After all, you want to be sure that the artwork in question has value and will increase in value over time. All you need to do is familiarise yourself with the style of art you intend to buy. Most people automatically think of painting when they think of art, but perhaps you are more interested in photography or pottery.

Start by visiting exhibitions. Read the brochures that often come with them to familiarise yourself with some of the terminology. The internet is also a good medium to find out more about art, especially forums or message boards.

It makes sense to choose a style of art that interests you, not only because it will be easier for you to get to grips with it, but also because you will have to live with the investment object you buy for a few years.

The selection of the artwork

The most important rule here is: choose an object that you like yourself. Listen to your instincts. If you recognise the value of an object, others will most likely do the same. With art, the value is decided by the recognition of art collectors, not by dry figures as with shares.
Also remember that you are not just investing in the individual art object, but in the artist. Someone who would have picked up a doodle by Pablo Picasso as an ordinary teenager for little or nothing would have become filthy rich years later when Picasso became famous, without investing much. Look through trade journals to see which artists have potential but don't have a name at the moment. Find the next Picasso before he becomes famous.

Avoid traps

Especially if you are not a real art connoisseur and your interest in art is mainly limited to the financial side, you can easily be taken advantage of. Nowadays, art objects, especially prints, can be faked well enough with modern technology that a layman won't recognise it.
Also beware of 'limited edition' or 'certificate of authenticity'. Both are not protected terms. 'Limited' can mean thousands or millions of copies, and anyone can create a certificate themselves.

I also recommend that you do not buy more expensive art objects online, but rather select them in person. As a beginner, it is better to steer clear of auctions, as forgeries are often auctioned off here too and the true value of an art object can be recognised more easily by an expert during an auction. The safest way is to buy directly from the artist at an exhibition.

In general, don't spend too much money on your first investment so as not to make a mistake. Instead, focus on young, up-and-coming artists from whom you can buy cheaply.

Storing the art object

The value of your artwork in 10 years' time depends not only on the fame of the artist, but also on the condition it is in. Depending on the type of damage, it may even become completely worthless. To protect it, you need to store it properly. As each type of art object requires a special type of storage, it is best to find out exactly how to store it when you buy it or beforehand on the Internet so that it does not fade, become scratched or otherwise suffer damage. Try to keep it as good as new. You may need to take more precautions than you think, so be prepared.

Reselling a work of art

As with all investments, the value of an art object also fluctuates. If you are planning to sell your art object soon, have it valued by a professional. Never sell it to the person who values it. It's better not to tell the professional that you're planning to sell it, because you never know who you're dealing with. Instead, state that you want to have it valued for insurance reasons or out of curiosity.

If you know roughly what your artwork is worth, you can think about a minimum selling price. Regardless of whether you want to sell it at an auction or an exhibition, you should definitely set a minimum price. Bear in mind that you may have to pay a commission to the auctioneer or similar when you set your minimum price. Always sell where the best-known art collectors buy.

At an auction, you have the chance to win the highest possible prize, depending on who is present.

Over time, through interest and research, you will get to know the right people you can trust to sell your art object.
If you pay attention to the most important points, art is a worthwhile investment.

These are summarised below:

• Monitor the art market for promising young artists

• Invest little money in unknown artists at the beginning

• Make sure your art object is stored correctly

• Only trust reputable art exhibitors and appreciators

• Buy something that convinces you

With careful consideration of these points, there is no reason why you should be disappointed with art as an investment.