4 Ways to Become an Art Investor (2024)

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Co-authored byEric McClure

Last Updated: August 28, 2019Approved

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   Familiarize yourself with the basic vocabulary of the art world. Between movements in art, compositional theory, and high-brow buzzwords, there are a plethora of terms that you’ll need to learn in order to discuss art. Keep a notebook handy and jot down words that you encounter in art publications, forums, and conversations and look them up online.^[1]

   • Art movements that you should study include surrealism, impressionism, expressionism, pop art, realism, modernism, and post-modernism.
   • Terms that you should know in order to talk about composition include “framing,” “context,” “aesthetic,” and “medium.”
   • ”Appropriation,” “dynamic,” “intimate,” “suggestive,” and “aggressive” are all common words used to talk about art. They carry their own connotations, so take note when you see them used in an article or conversation.
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   Frequent websites that publish art criticism. There are a lot of online journals that publish art criticism that don’t require a subscription. Whitehot Magazine, Art Report, and Blouin Artinfo are all phenomenal resources when it comes to studying and understanding the art world. Find a website that focuses on the variety of art that you’re interested in investing in and check in regularly for articles, top 10 lists, gallery openings, and artist profiles.^[2]

   • There are plenty of websites that focus explicitly on art investing as well. Be wary of any websites that insist that you can make a quick buck though, as there are plenty of scams out there.
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   Purchase a subscription to popular art publications. Artforum, Juxtapoz, and Art in America are all excellent publications that publish art criticism. Look at a few publications online to see which one you’d be interested in and purchase a subscription. One of the best ways to learn about what styles, artists, and mediums are growing in popularity is to study what major critics are paying attention to, so take note of the names of artists that get talked about in each issue.^[3]

   • Public libraries often carry copies of these magazines, and you can usually access a digital copy of the publications for a cheaper price.
   • Major publications also list major gallery openings. If you live in a major city, check the advertisem*nts for gallery openings in your area.
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   Take an art criticism class and attend lectures. Audit an art criticism course at a local college or university. If you can’t fit a class into your schedule, contact your local fine art schools to see if they have any adult or post-graduate programs available. Take an art criticism class in your spare time to learn how to talk about art and meet other potential investors that you can network with.^[4]

   • There are several YouTube channels and online classes that offer free lessons on art history and criticism. Examples include John Berger’s “Ways of Seeing” lectures on YouTube, and “Modern Art & Ideas,” which is taught on Coursera by Lisa Mazzola.^[5]
   • If you know that you want to become an art investor after college, consider majoring in art history or business to give yourself a head start.

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   Specialize in a specific medium or genre of art. From avant-garde ceramics to constructivist painting, there are literally hundreds of different kinds of art on the market today. It will be impossible to know which artists are going to prove to be good investments in every single field, so pick a style of art that you enjoy to specialize in it.^[6]

   • To get a sense of what you’re interested in acquiring, expose yourself to a lot of different kinds of art and go to every gallery opening that you can.

   Tip: Certain mediums and genres are really hard to profitably invest in. Postmodern painting is the most lucrative, but also the most competitive. Video and collage arts are going to be difficult fields to make money in.

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   Identify your goals as an investor. Art investment can be a difficult activity if you don’t know what you’re trying to get out of it. Long term investment requires a different approach than short term investing. Make a list of why you’re becoming an art investor to inform the overall approach that you want to take.^[7]

   • If you want art that will hang in your home for years before you sell it for a profit, buy from well-established artists with consistent records.
   • If you want to flip local work online to a larger market to make a quick buck, frequent art fairs to get a good span of work to choose from.
   • If you’re simply trying to make money and don’t care about the art, consider buying into an art investment fund. Investment funds are pools of money that are used by a panel of experts to make informed purchases on behalf of their investors, and operate like mutual funds.
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   Choose a market that you want to begin buying and selling in. Buying art on the primary market means that you’re purchasing pieces directly from an artist or auction house before the work has ever been released to the public. The secondary market is where current owners of a work buy and sell art. The primary market can be hard to interpret without knowing what the secondary market’s demand is, but it’s also where you stand to make the most money from an artist or auction house underpricing a work.^[8]

   Tip: A good rule of thumb is to start on the primary market of your local scene and the secondary market of the global scene. Purchasing from artists and galleries in your immediate area where you know the market will make buying manageable early on. Relying on a big secondary market for bigger purchases will give you an idea of what the demand will be in the future.^[9]

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   Start by looking for lesser known artists that have some buzz. Look at reviews of gallery openings and write down the names of any artists that receive praise for interesting work. Don’t pay attention to reviews that focus on technical skill. Instead, look for criticism that describes the work as forward-thinking or visionary. This is often an indicator that an artist has tapped into a unique style or process that may catch on as time goes on.^[10]

   • The art market doesn’t generally focus on the technical ability of an artist when determining value. instead, a price is usually predicated on the artist’s process, a piece’s thematic elements, and the context of a work.
   • As a general rule of thumb, avoid purchasing art from students that are still in master’s or Ph.D. programs. It can be impossible to tell how the market will (or won’t) respond to their work.
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   Identify famous artists whose work increases in value over time. While you’re probably not starting out by purchasing an original Warhol or Pollock, there are thousands of artists making work out there that fetch 4-5 figure price tags. Investigate the names of artists you hear mentioned in art publications and go to local auctions to hear what kind of prices mid-level artists are getting for their work.^[11]

   • Go to a few auctions without the intention of buying anything. Write down the names of the artists with work for sale and research them to identify trends and up-and-coming artists.

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   Attend gallery openings and talk to the owners. Go to gallery openings and look for the owner. Kindly introduce yourself and explain that you’re looking to get into the world of art investment. They’ll ask you about your collection to try and gauge what you’re looking for, so have a few photos available on your phone to share what you’re interested in buying. If you don’t have a collection, tell them! They’ll be able to help you get started as a collector.

   • Smaller galleries tend to have very active owners that will be willing to chat about potential investments. You’ll get more information and knowledge from local gallery owners than major museum curators, who won’t really take you seriously at first.

   Tip: Identifying the owner of a gallery is usually easy at an opening. They tend to be alone and walk around to introduce themselves to visitors.

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   Go to art fairs and interact with the artists. Art fairs represent a rare opportunity to expose yourself to large quantities of art all at once. They also provide an opportunity to interact with a large number of artists, since the art at art fairs is usually sold directly by the artist. Introduce yourself to painters, photographers, and fine artists whose work you’re interested in.^[12]

   • Even if you don’t end up buying anything, you’ll learn a lot simply by talking to artists about their processes and how they end up establishing prices based on the demand for their work.
   • Art fairs are also a good way to judge the local demand in your market. If art fairs in your area tend to be empty and poorly-attended, it may be a sign that it’s a bad area for you to be looking to buy and sell.
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   Attend auctions to meet other investors. Fine art auctions are a tremendous resource for networking with other investors in your field. Introduce yourself to the people that bid on works at an auction and ask them about their investment strategy. Talk to them about their collection and exchange phone numbers to stay in touch. If you can build a relationship with other investors, you may be able to get the inside scoop on rare collections and insider opportunities in the future.^[13]

   • Auctions are events where potential buyers bid against one another to buy expensive goods. They have their own set of social norms and rules, so they may seem overwhelming at first. To play it safe, don’t plan on bidding at the first couple of auctions that you attend.
   • Auctions are usually free and open to the public. High-end auction houses may require tickets, but they usually only use them to know when they’re at capacity so they’re usually free.^[14]

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   See Also

   Best Artists to Invest in Now for a Big ROI - MoneyMade

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   Contact an artist directly to look into buying their work. If you stumble upon an artist with work that you’re interested in, contact them via email or show up at a gallery opening and tell them that you’re interested in potentially buying their work. They’ll likely have more work that they’d be able to show you, and you’ll be able to learn more about a specific piece that you’re interested in buying.^[15]

   • Most artists have personal websites where they showcase and sell their work.
   • Some artists will be resistant to working with a buyer that wants to buy their art as an investment, especially if they’re well-established in their field.
   • Many established artists have representatives and agents that deal with potential buyers. If you know an artist is being represented, contacting them directly can come off as an insult to the artist.
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   Enlist gallery owners to keep an eye out for work you’re interested in. Gallery owners make a living buying and selling art. They are likely to be regularly purchasing or soliciting investable art. Ask gallery owners to keep an eye out for work that you might be interested in buying. You’ll be the first person they call when they come across a potential investment.^[16]

   Tip: Be kind when turning down an opportunity to look at art. If you aren’t, they’re unlikely to contact you in the future when they encounter a new collection or artist.

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   Hire an evaluator to appraise your art before buying or selling. Evaluators are professional appraisal experts, and their estimates hold quite a bit of weight when it comes to selling or buying art. A professional evaluation will put potential buyers at ease, since they’ll know that they aren’t overpaying for a work. Inversely, a professional evaluation will let you know whether or not a potential purchase is worth considering at its available price.^[17]

   • Most galleries and studios have specific evaluators that they work with. Ask about evaluations when inquiring about a piece’s price.
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   Contact the gallery that you bought a piece from before selling it. Gallery owners will appreciate the ability to offer a piece to their clients before you put it on the open market without their assistance. Apart from being a courtesy, it’s possible that the original gallery owner will have buyers readily available for you, since they’re in contact with other people that are likely to have the same tastes in art.^[18]

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   Market your art online before going to an auction house or private seller. An easy way to test whether an evaluation is accurate or not is to try listing the work online for a price higher than its been evaluated at. You may be able to get a higher price than you’d expect by using a non-traditional venue to sell your work. This will also give you a sense if the original appraisal is an accurate representation of what a piece of art is worth at the current moment.^[19]

   • Lumas, Society 6, SaatchiArt, and Artfinder are all reputable online venues to sell works of fine art.
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   Don’t panic and sell too quickly if the market turns. If the international market takes a dip during a recession or slow period, don’t lose your cool. The market for fine art can be fickle, but that doesn’t mean that you should sell at the first sign of trouble. Fine art is usually a long-term investment, and you should generally hold on to assets during tumultuous periods in the market.^[20]

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   Hold a purchase when in doubt. If you haven’t gotten an evaluation that you’re happy with and the market isn’t particularly strong, hold on to your investment. Holding on to an asset is the best way to let it appreciate over time, especially if you’ve got your hands on a piece created by an up-and-coming or well-established artist.

   • It can take time for a work to appreciate in value, so be patient!
   • You may end up waiting for quite some time if you want to get high prices for your work, so don’t buy a piece expecting to always sell it off right away.

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