When you think of buying investments, your mind probably goes to real estate or the stock market. You probably don’t think of art. According to Forbes, the pandemic spurred more innovation and risk-taking in the past 18 months than in the last ten years. Art is quickly gaining popularity as an investment tool, for four reasons:
To create stability. The value of art is entirely independent of stocks, bonds and other commodities. Diversifying your portfolio by adding art is one way to add stability during uncertain times.
To have something tangible. Some investors like having something real that they can see, touch and hold.
To fill your home with beauty. While art can be a tremendous investment that could potentially grow in monetary value, the real reason for buying it is because it resonates with you on a deep, emotional level. If a piece makes you happy or brings you comfort, your investment has already paid off, no matter what happens in the market.
To support artists and culture. Art is a priceless part of our culture. Every time you buy a painting, sculpture or carving, you’re helping to create a heritage for future generations to appreciate and cherish.
Investing in art is a must-have addition to your overall strategy, but real estate remains the safest and most profitable way to grow your wealth. Here are some of our other posts on the topic:
- 5 Up and Coming Toronto Neighbourhoods to Invest In
- Buying an Income Property? Here’s What to Look For
- Should You Sell or Rent Your Condo When You Move?
The Keys to Successful Investing in Art
If you’re buying art for its beauty and to support local artists, you can never go wrong. The value of a beautiful work goes far beyond its monetary worth. However, when investing for the purpose of growing your portfolio, there is always going to be some element of risk. How do you balance your love of art with keeping your portfolio as healthy as possible?
These tips will help you manage and maintain your portfolio to give yourself the best chance of success.
Research
As with any investment, it’s essential to investigate thoroughly before investing significant money into a piece of art. Questions to ask yourself include:
Who is the artist? The secret is to find an up-and-coming artist whose work will likely increase in value over time.
Does the artist have any previous works that have succeeded in the marketplace? While past performance is never an indication of future value, it is a good sign of future potential.
Invest for the Long-Term
It’s important not to get caught up in the excitement of the latest craze when choosing any sort of investment. For example, you may have heard of NFTs (non-fungible tokens) selling for ridiculous amounts of money, sometimes for millions of dollars.
And, of course, everyone has heard a story where someone bought a piece of art at a garage sale that turned out to be worth a fortune. Stories like these are fun, but hoping for a short-term gain on an art investment is like hoping to win the lottery.
Investing for the long term is a much wiser strategy and far more likely to pay off in the future.
Understand the Risks
Every investment vehicle involves risk, and art is no different. You can manage this risk by understanding your tolerance and diversifying your portfolio accordingly. If you buy a sculpture from an unknown artist, balance it out by investing in a blue-chip piece from an established name.
Invest in Art as Part of Your Strategy
Investment in art is a great addition to your portfolio, but should never be a standalone strategy. It’s always better to diversify by adding other tools to grow and protect your wealth. While we always recommend talking to a financial expert, it’s well-advised to balance your portfolio with a mix of investment tools to ensure your success in the long term.
Of course, the best reason to invest in art is that it speaks to you on a deep level. Here’s how to create the perfect gallery wall to display your best finds.
Now that you know why art is a great investment, let’s take a look at some of our favourite galleries who are supporting many of our local artists.
Kefi Art Gallery
Founder Liza Zhurkovskaya created this virtual art gallery primarily to promote female Canadian artists. For more than seven years, Liza worked directly with clients to help them buy and commission art and has brought hundreds of artworks to the public eye.
In 2020, she started the Kefi Art Gallery to contribute to Toronto culture and help people surround themselves with the beauty of art during the pandemic lockdowns.
You could spend hours browsing the works of hundreds of Canadian and international artists. Whether you want the perfect piece to invest in or simply to decorate your house with beautiful originals, Kefi Art Gallery is the place to start.
Art Gallery of Burlington
The Art Gallery of Burlington is a hidden gem that doesn’t get the attention it deserves. There are always fun and educational events and workshops to introduce the whole family to the love of art. Right now, there are workshops to teach you how to draw, sculpt, or even create your own digital avatar.
Current exhibitions include “Constellations,” a gallery by Joanna Strong and “Recognition” by Vita Plume.
There is also an onsite shop where you can browse the works of many Canadian artists to add to your collection.
Trias Gallery
As if the waterfront in the Bronte Village area wasn’t beautiful enough, now it is home to the Trias Gallery. The founder, Indira, is a painter herself who started the gallery to bring recognition and respect to artists everywhere.
You’ll never find the same piece twice, but you’ll always discover a wide range of artwork available from over 100 established and emerging artists. Displays include bronze and Inuit carvings, traditional and contemporary paintings and even wearable art.
Crescent Hill
Crescent Hill is the premier art gallery in Mississauga, and it’s easy to see why. There are 5600 square feet devoted to showcasing the brilliance of Canadian artists. With such an expansive collection, you are sure to find something that speaks to you. The gallery offers many unique services to ensure that you love your new artwork.
Artist flowchart: Do you want to find the perfect painting but don’t know where to start? This virtual tool lets you figure out precisely what you’re looking for with a few mouse clicks.
Virtual installations: You can see how your chosen work will look in your home before you buy. Simply send the dimensions of your space, and Crescent Hill will create a virtual mockup.
In-home trials: The virtual mockup gives you a good idea of how your painting will look, but it’s impossible to gauge the size, texture or lighting accurately. The ultimate solution is an in-home trial, where the gallery allows you to display your artwork for a few days to make sure it is perfect.
Do you want to know more about ways to invest in art or real estate? We are always happy to talk. Reach out to us here.
Featured image provided by Kefi Art Gallery and created by Fabrizio Sclocco
