Art for investment's sake - Do you know what you like?

Many of us continuously scour the internet or read the City pages and money sections of the newspapers in desperate hope that they will unravel the confusing world that can be the stock market. You may read for pure inspiration and investment ideas. This tactic can work for some but for others it does not. The result - frustration - what to invest in?

Have you ever considered art? How seriously you wish to invest in art will determine your level of knowledge and vice versa. Art investment is flourishing at the moment with £21 million invested in Chinese art just for the month of October, and for the year as a whole more than £150 million - you get the picture... or painting if you'll excuse the pun.

Investing in art does have similarities to investing in the stock market. Art has different sectors such as paintings, ceramics, and gold and so on and so forth. Then when you include different eras you realise that there is actually a lote more to the eye than just liking a painting. Or is there?

If you don't like it, don't buy it!

Apart from the issue of what you can afford, experts actually say that the best way to buy a picture is simply by liking what you see. The reason, well it's very simple. If your picture turns out to be a bit of a pup and doesn't appreciate or sell, then at least you like it and can hang it on your own wall.

Serious collectors do, of course, buy pictures for their rarity and potential future resale value. Just like a wine investor who buys wine not because they like the taste but for the price increase when they come to sell.

Whilst this may sound relatively simple, and depending on what you wish to invest in it may be, the fact that Sotheby's runs its own art degree course at its learning institute begs to differ. If you are hoping to pop down to your local flea market with a hidden agenda to come across a long lost classic then good luck - it can and does happen but it's not an investment strategy.

Art investing can be tailored to individuals. Hordes of people enjoy art as a hobby. Many collectors just stick to a handful of artists that they know intimately and not just those that are long since dead either. Like investing in a small fledgling company on the AIM market, some art investors are closely tracking their most favourite and promising newcomer. Whether they specialise in painting or photography it does not really matter as the investor is looking at future reward in exactly the same way as a stockbroker would look at a start up company with a potentially great product.

13 November 2006 © Moneyextra.com

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