Five Art Investment Tips for the First Time Buyer

28-05-2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In recent years, art investment has become the hot topic in areas of Asia, such as mainland China and Hong Kong. There are many new buyers trying to learn how to invest in Art, however they have a lack of knowledge. Jonathan Macey, the CEO of Macey and Sons Auctioneers and Valuers Limited, would like to share his solid experience in art investment.

 

Jonathan gained experience in art investment at Philips, the historical auction house based in London. He also worked for Art Futures Group as Director of Operations in Hong Kong, where he became an Auctioneer and Valuer. Macey and Sons Auctioneers and Valuers Limited was established in Hong Kong as it is the gateway between east and west. The Hong Kong art auction industry is further enhanced by the added advantage that all capital appreciation is tax free. The first time buyer will be able to earn returns if they can grasp the following five tips.

 

1. Buy wisely, sell wisely

Buy wisely, sell wisely means that the collectors should be able to understand the background of the artist and the trends of the art market before making any decisions. Jonathan suggests that the investor should select artworks which have the certification of authenticity from the artist and they should retain the artwork for at least 3 years.

 

 

2. The Important of Diversifying Investment

 

 

The Importance of Diversifying Investment It is not recommended for the investor to only purchase artworks from the same artist. The investor is advised to build their own art investment portfolio with pieces from different artists. Art investors should understand how to diversify their investment into different countries, for example, if they are interested in new ink art, they should be considering artists in Hong Kong, Taiwan and Malaysia.

 

 

3. The Quality of Art is more important than the Artist

 

The Quality of the Art is more important than the Artist The standard evaluation of the quality of the artwork is not only measured by the artist, understanding the artwork itself is also really important. The investor should have the ability to purchase high quality art works based on their knowledge. The initial budget for entry level art investment is between HK$100,000 and HK$200,000. The investor can consult with art specialists for information on the trend of art market and the background of artists.

 

 

4. Purchase an Artwork at a Low Price

 

Purchasing at a lower price is the basic theory of investment, and can also be applied to art investment. Jonathan suggests that investors are aware that the fluctuations in the market may determine if they are able to trade-in their artworks.  

 

 

5. The Quality of Artwork is the Top Criteria

 

 The Quality of Artwork is the Top Criteria. The quality of the artwork is always the top criteria for picking potential art pieces. Besides their art investment service, Macey and Sons Auctioneers and Valuers also offers an art investment seminar and workshop to educate newbies on how to invest in Art.