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Art Investment: 4 Methods To Invest In Art.


Eduard Steimle - 9th October 2019 - 0 comments

Art Investment can be difficult and tricky, especially if you do not know which options are available to you. In this short guide, we explain 4 different methods to invest in Art. Spoiler Alert, one option is Feral Horses.

Art Investment is about building a collection of artworks. Everything start from empty frames.

Build your own Art Collection

If you are confident enough, you can go out there and start building your art portfolio on your own.
Investing in Art by yourself can be challenging but also rewarding in case some of the artworks you buy end up being a solid investment.
You can do your own research, go to art fairs and art galleries, and spot the best investment artworks that there are out there.

Pros:
You will feel more rewarded in case your purchases end up being great investments.
By investing in art by yourself, you will unavoidably learn a lot about the art market. Knowledge is always gold.
You can start to invest a smaller amount of money if your pockets are not deep. There are many talented emerging artists and their artworks are often not that expensive. However, as they are not yet established, buying art from emerging artists carries higher risk.
In case you desire it, you will be able to showcase your artwork in your house or flat.

Cons:
The art world is not a transparent market and therefore it is very difficult to find reliable information.
The best deals are often found with the help of insiders. Art industry professionals who have the connections to know in which direction the art market is going.
You will need to take care of all the management side of your artworks. From insurance to transport, installation, maintenance and storage.

A good source for information for art investment are art galleries.

Seeking professional advice

In the art market, there are plenty of professionals who can guide you through the process of investing in art. From wealth managers ( if you have enough capital to have one) to private art dealers.
These professionals will help you find the best art investment opportunities as they often have an extensive network of contacts.

Pros:
Art professionals can guide you through the creation of your art portfolio. They have the knowledge, expertise and connections to help you make the best possible art investment decision.
Art professionals’ connections are sometimes so strong, that you will be able to buy some artworks for a discounted price.
You are able to decide whether you want to keep the artworks at your place or store them.

Cons:
The management of the artworks is still yours if you decide to build an art investment portfolio with the help of professional advice. Art Dealers and Wealth Managers might organise all the logistics for you ( transport, insurance, installation and storage), but all the costs are on you.
Help is not free, unfortunately. Art Dealers will charge you a commission both when you buy and when you then want to sell your artwork. Wealth Managers instead will charge you a traditional 2% management fee on the value bought plus a % commission on the profit realised once the artwork is resold.

Art Investment Funds

Art Investment Funds are great if you don’t want to be bothered too much, you have no capital limitation, and just want to see your nice Return on Investment after a couple of years. These funds are founded and managed by some of the most knowledgable and connected people in the art world. So, if you are looking for an easy, reliable solution to invest in art, art investments funds are for you.

Pros:
Art Investment Funds are a reliable, safe and hassle-free way of investing in art.
Best performing Art Investment Funds claim they make between 7% and 20% average profit per year before commissions.

Cons:
Usually, the minimum ticket to invest in an Art Investment Fund is £100’000. You will need lots of liquidity to afford this.
Art Investments Funds have the traditional 2/20 commission scheme. 2% management fee on the amount invested, plus 20% on the profit realised for you.
You can’t invest in the art you like, as you can’t decide where you allocate your capital.
Art funds have lock-up periods. For a set period of time, usually at least 5 years, you won’t be able to withdraw the money invested in the fund.

Feral Horses

Art Investment on Feral Horses

And then there is us, Feral Horses. The first art platform that allows anyone to invest in art. Our solution is optimal if you are just starting to explore the art market or you are looking for an easy and affordable solution to diversify your current art investment portfolio. We are, in fact, a hybrid of all the 3 above-mentioned solutions. Through us, you can decide which artworks you want to invest in, get content and information to help you out in your decision-making process and sit back and relax while we manage and exhibit your artwork. On top of this, the minimum entry ticket to invest in art is affordable and we reward for your purchases with physical rewards and art experiences such as artists’ studio visits and invites to exhibitions’ inauguration.

Pros:
Minimum Investment Ticket is about £10. Through our model of co-ownership, we are able to completely destroy the high barrier to entry.
You can choose in which artwork you want to invest in.
On top of the investment value, as a co-owner, you get invited to actively participate in the art market. Every sale campaign has some reward embedded, such as invites to exhibitions or artists studio visits.
You can decide to sell the shares you own to other users, directly on our platform.
You don’t need to worry about transport, insurance or storage. Feral Horses takes care of everything for you.
Thanks to your investment and the one made by hundreds of other co-owners, we are able to publicly exhibit your artwork.

Cons:
You are not able to physically have the artworks you invest in. However, sale rewards for each campaign always include physical rewards such as prints or artists books. Plus, is it not better to go to a gallery or a museum and see your artwork exhibited?

Click here to invest in art in an innovative, affordable and fun way.

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