5 Good Opportunities For Investing In Contemporary Art Pieces

There are several effective, targeted, and profitable investment opportunities in contemporary art pieces. Investors are constantly looking to add valuable pieces of art to their portfolios and collections. Contemporary art is now getting recognized as a powerful, low-risk asset class — holding the potential to survive economic hardships and produce relatively stable returns. As an investor yourself, you should know how to drive scalable profits and returns in the fine art market. This way, you can grow, stabilize, and diversify your investment portfolio. Read on to learn about some good opportunities for investing in contemporary art pieces.

High Risk Modern Art

For a start, there is an abundance of opportunity investing in high risk modern art assets. While these artistic works are inherently risky, they offer the greatest profit potential for investors. To start investing in high risk modern art, purchase original works directly from private galleries, auctions, shows, and fairs. Buy creative, eye-catching pieces from an up-and-coming artist — who you think could make it big. You may just end up picking out a truly one-of-a-kind drawing, painting, or other artistic work. Or, purchase a new piece from an already well-known creator. Of course, this approach will certainly come with a higher price tag. Certainly, consider adding high risk modern art pieces to your investment portfolio this year.

Breakthrough Contemporary Artists

In addition, consider investing in unique works from breakthrough contemporary artists. If you’re searching for a solid long-term investment, this could be the most effective choice. The marketplace for new, emerging contemporary artists is in serious demand right now. Since you’re purchasing from lesser-known creators, this strategy is known to come with higher risk levels. Fortunately, it is also much more affordable than other options. To invest in a contemporary artist, you only need around $5,000 to $10,000 to get started. Of course, there are plenty of artists who charge much more — and a lot less — for their creations.

Contemporary Art Investment Funds

Or, you can invest capital into profit-focused contemporary art funds. Don’t spend millions of dollars purchasing original artistic works and pieces. Instead, place your money in mutual, index, or ETFs stock funds. These investable funds are available through most online brokerage apps — managed by dedicated, active investment experts. For lower-fees, choose a fund that is managed by a robo-advisor. Even with passively managed funds, you should still expect significant net annualized returns. Indeed, direct your investments to profitable, low-risk contemporary art funds.

Blue Chip Contemporary Art

Blue chip art investments might be a good opportunity for 20th or 21st century pieces. These types of artwork investments usually have a proven history of sales and performance over time. Similar to blue chip stocks, they may have prior valuations from industry experts. Some of the popular blue chip artists include famous names who are known for their lasting cultural impact like Picasso, Monet, Warhol, and Richter. One piece of blue chip art can sell for over $100,000 or more. By investing in the most successful artists in history, you can take a blue chip strategy towards art investing.

Contemporary Art Auctions

Take a look at the in-person and online art auction houses for contemporary art opportunities. These houses serve as secondary markets to flip artwork for a profit. You can attend some of the high-end auction houses or try to find opportunities with modern online auction houses. It is a good idea to pay attention to two prices. When buying contemporary art from an auction house, you will have to pay the hammer price plus a buyers premium. The fine arts premium can range from 10%-30% of the hammer price. To invest using auction houses, prepare for high swings and paying a premium to the market. Contemporary auction houses are another marketplace for investing in artwork.

There are several profitable opportunities for investing in contemporary art pieces. Many investors pursue modern art opportunities that are high risk, high reward. If you choose these assets, be sure to follow portfolio management best practices to mitigate risk. In addition, consider investing directly in pieces from breakthrough contemporary artists. If you lack the money to invest in high price tag original works, invest in mutual funds or ETFs instead. Of course, you can always invest in pieces from famous blue chip contemporary artists like Picasso, Richter, and Monet. To make art investing more exciting, sign up for some contemporary art auctions in your area. Follow the points above to learn about some good opportunities for investing in contemporary art pieces.