For most collectors, a primary goal of collecting is to earn a profit. But aside from just waiting, how can you help ensure that your purchases grow in value rather than lose money? Here are a few active steps you can take to boost your chances of financial success.
1. Be a Cheerleader for Artists
If you promote artworks and artists you're already invested in, you increase their reach, popularity, and sales. And this, in turn, increases the value and sales prices of works you own. Promote artists by actions like loaning your own pieces to galleries or museums, offering home-based exhibitions, or even hosting a discussion at trade events.
2. Educate Yourself Regularly
The more you learn about any investments, the more you can make wise choices. Start by learning more about the art you're particularly interested in — the schools, materials, established artists, and new ones. Learn about and stay abreast of the art world as well. You want to be able to spot trends, weed out bad investments and fakes, and understand where to buy and sell for the best profit.
3. Develop a Long-Term Plan
Don't simply buy and sell pieces when the mood strikes and without a plan. A haphazard approach will limit your ability to earn consistent profits and build on them. Instead, craft a plan to buy smaller and less expensive pieces you will then shepherd into better price points. Then, these can be sold to fund larger purchases, and so forth. This plan should have short-term and long-term goals.
4. Support the Art World
Be involved in the art community to find your next big investment. New and up-and-coming artists often need help getting training, practicing skills, and scoring early showings. As a collector, you may be able to invest in young artists' development and classes or the small shows that promote them when they're just starting.
5. Grow Your Network
The best purchases and sales of many art pieces often depend on networking. Build your network by meeting with other collectors, galleries, dealers, artists, and even schools. You'll hear about deals and opportunities. You may learn about collections going on sale before they hit the market. And you'll even have chances to barter and trade with others.
Want more ideas to increase your profit margins? Start by consulting with an experienced art dealer in your area. They'll help you know how to build and invest in your art collection.