Budget Art Investing

The Huffington Post recently posted a short article on investing in art on a budget, looking at art funds, emerging artists/developing markets, and private art investment partnerships.

The Huffington Post reports

Investing in art is not as daunting as it seems. Contrary to popular belief, one does not have to own millions in assets to be able to become an art investor. Here are some ways to invest in the art market without breaking your bank:

1. Art Funds

Participating in art funds has been a popular option for art investors over the past few decades. The most prominent art fund is The Fine Art Fund Group, which started in 2000 by Philip Hoffman. To date, they have $200MM in committed capital. However, the minimum investment in $250,000, which is quite a hefty sum for many investors who are interested in the art market. On the other hand, companies such as Arthena have a lower barrier of entry, with a minimum investment of $10,000.

In general, art funds are suitable for long term investors - investment horizons can be anywhere between three to ten years. Different art funds also focus on different time periods, may it be Old Masters, Modern, Contemporary and even Emerging artists.

The benefits of investing in art through an art fund is the lowest barrier of entry as well as not having to deal with the logistics such as shipping, storage and insurance.

Art Funds Share in the Art Market 2015

2. Emerging Artists/Developing Markets

Purchasing art from emerging artists is also a great way to invest in art on a budget. Emerging artists’ works can range anywhere between a couple hundred to a few thousands of dollars.

A great way to access and source these artists is through auction houses (Christie’s and Sotheby’s), as well as galleries (David Zwirner and Gagosian). Emerging artists touted by the aforementioned galleries and auction houses indicate a growing collector base and reputation. Reputable online galleries such as Saatchi Art, are also a great way to source up- and-coming artists.

Consider investing in works in developing markets such as Southeast Asian Art, Brazilian Art, as well as Middle Eastern Art. Auction houses such as Sotheby’s already have annual auctions centered around art from these developing markets.

3. Private Investment Partnerships

Similar in concept of art funds, investors pool together capital to purchase art assets. The difference between the two methods is that investors are able to have greater input in deciding which assets to purchase. Furthermore, starting a private investment partnership is more difficult - you have to be acquainted with the right people, while finding the right advisor with the required experience and expertise to make the right investment decisions.

Source: The Huffington Post