The reason for that is the art world has smaller amount of regulations in comparison to the financial industry. If you were considering investing your money in artwork, you should know that a small amount of legal protection is in place for this type of investment. One of the things you need to focus on when you invest in prints is to check for fakes.
This means you need to do some homework before you invest in any paintings, because frauds would try their best to imitate the work. Therefore, you need someone experienced to look into the artworks before you make any purchase. You should look out for signed artwork, as the signature might be forged. You can hire a professional to do further research on the drawings or paintings.
For those who are considering buying artworks from galleries, they should check the reputation of the establishments through the Better Business Bureau as well as with other buyers. Check if there have been any complaints charged against them in regards to the authenticity of the artworks that they sell.
Keep in mind that the old saying, buy low and sell high, applies to this type of investment as well.In the art world, one way to achieve this would be to invest in paintings of artists that are not renowned, but they have the potential to become well known with art collectors from all over the country. Bear in mind that predicting the artists’ future recognition or reputation is just as tricky as guesstimating the future income on bonds and stocks.
You should consider keeping your preliminary investments low by buying original signed prints by artists that have potential. They are a lot more affordable than sculptures and paintings. However, there is nothing to stop you, if you have the money to invest in the original artworks.
Some people are cautious about purchasing original paintings from auction houses because the fees charged can make the work very expensive and of course you must be sure that the article you are buying is really genuine and has not been damaged, which can in some cases render it worthless, some auction houses are better than others, so beware. The auction houses charge higher fees to recoup costs for advertising and arranging the auctions. Many people that are not familiar with art investment tend to be surprised that the auction houses can charge as high as twenty five percent plus vat of the initial price of the arts sold.
You need to remember that if you invest in large piece of artwork, you may need to use a transportation company to send the artwork to your house. The artwork needs to be packed perfectly to avoid being damaged during transportation. It would be a smart move to insure the paintings to prevent losing your investments. Think thoroughly before you make your final decision.