The global art market report shows that most people buy paintings not only for their aesthetic beauty but also for financial investments. This is one of the reasons why it is becoming popular among stock traders.
What was seen as mere home décor is now considered among the most lucrative investments in the stock market.
For instance, a 200 dollars piece of art can be converted instantly into millions through the stock exchange. Nonetheless, for one to achieve these huge investment returns, you have to consider both the quantitative and qualitative analysis of the item.
With that said, here are key reasons why stock traders would love wall art as a gift among many other things.
- Potential increase in value
This is among the topmost reasons why traders prefer investing in artwork. With time, the prices of wall art gradually appreciate, leading to huge returns in the long run. The main trick here is to choose your painting wisely. Once you have identified the right collections, the chances of getting more money than the initial buying price are high.
- Enjoyment Value
Everyone finds joy in doing something they love and for most art lovers this is no different. Art is mainly a representation of beauty and glamour that only those who enjoy it can understand. It is also a way of expressing ones feeling without having to talk them out. If you are no into art, then investing in it could be a huge mistake.
- No Market Fluctuations
Once you invest in a painting you no longer have to worry about market fluctuations, stock market corrections, or volatility. When other investors are counting losses, you can sleep easily knowing that your investment is safe.
- Tax benefits
Even though tax benefits are not common with most collectibles, you can still get a benefit if your piece falls in a certain category. For example, if you’re piece is positioned in a 30% tax bracket, the highest amount of tax you will pay after selling it will still be 30%. However, the percentage of the tax bracket varies depending on your budget.
- Uptrend
Currently, the artwork is among the topmost trending commodity in the stock exchange. This means, no matter how long it takes to re-sell it, eventually you will still earn income. See this link to read more benefits https://lovechicliving.co.uk/the-5-benefits-of-wall-art-decor-in-every-home/
What to look for when buying art
There are things you need to consider when purchasing an art regardless of your experience. Here are a few things to keep in mind:
- Preference
Your taste and preference can help you make a sober decision. Go for something that you love and connect to. The type of art you opt for should inspire you to want to know more of what it means and represent.
Although it is always good to ask around for ideas, your final decision shouldn’t be based entirely on others’ judgment.
You can also consider checking various gallery websites to get more insight. Plus, don’t let the idea that you are only doing it for money lead you to purchase a piece you don’t like.
- Budget
Price is key when purchasing any item. You want something that can give you high returns without breaking a bank. Don’t go flashing money on something you cannot afford. Also, the quality of the painting is important.
Choose a painting that has an authenticity certificate to avoid the potential risk of getting a counterfeit. Nevertheless, this certification might cost you a little bit more, but it’s better to be sure than sorry.
Likewise, always compare prices from different traders before settling for a particular one. This will help you get the best deal. A little research can also help you make a sound decision.
- Knowledge is power
Buying a painting is an expensive investment and you wouldn’t want to gamble with your money. This is why you should always conduct thorough research n the item before purchasing it.
Know the profile of the artist as well as the type of collection he is in. Knowing whether or not his work has been featured in major exhibitions is also important. Such details can help you predict their growth in the market.
The more the growth the high the returns. Likewise, find out if the artist is dead or alive. If deceased, a reputable history about his work will determine the quality of his painting.
- Purpose
The main reason behind purchasing a particular painting is to add color to your space. However, if your main goal is to invest, then you have to do detailed research before settling for a particular one.
Principally, you have to check for its originality by making sure the artist behind the drawing is the original artist. Buying an original piece guarantee you value for your money and elevates the art culture as well.
Also, avoid buying second-hand paintings no matter how impressive the prices are. Most second-hand pieces offer discounted prices, but they may not give you good returns after re-selling.
- Take it slow
Once you have identified a particular painting, you might be tempted to jump into making a purchase.
However, regardless of how good the deal is, avoid making a speedy sale. Likewise, don’t let peer pressure persuade you into getting something that you don’t like just because it is trending.
Make sure what you buy suits your character and will give you huge returns later. Getting the ideal piece takes time and effort so, chose wisely and don’t rush. Click here to read more.
Conclusion
Artwork is among the most traded items in today’s stock exchange market. Apart from its huge returns, it promotes and motivates artists to do more. Likewise, the artwork isn’t affected by securities market indexes or market inflation. You can sleep peacefully knowing your money is safe. Nevertheless, purchasing a piece of art requires thorough research to avoid getting counterfeits. It is also good to consider that this type of investment requires a huge sum of money for you to achieve good returns. This is why experts recommend having a well-planned budget. Plus, shopping for the right item can be tricky so always seek professional advice before investing.