Chapter 3: Art Investing Scams To Be Aware Of Regulation In The World Of Art
If you were to invest in the stock market and any of these scams were to fall into your lap, you would have some ability to fight it. When you are investing in art, though, that is not always the case. In fact, it may very well not be the case at all.
Unlike most securities available today, there is no real regulations set in place for the art world. You could sue them but you would have a hard time proving your point over the other guys.
In the case that you were misrepresented on the piece, you simply do not have the same benefits of protection in terms of other securities and investments.
The only way to over come this, then, is to do your own work and to really know what you are buying long before you actually buy it. While that may seem to be difficult, the only way to invest in art is to know exactly what you are investing in and it is all on your shoulders to make that happen.
Here's an example that you can take to heart.
Let's say that you visit a local art show and you find a piece that interests you. You notice that it is by a fairly well known artist and that interests you.
Before you actually pay for the hefty price tag that is on the piece you are curious about the value of it. Could this really be worth the money? Could this be a fake? Perhaps the prices are inflated and you don't realize it as of yet. Should you buy the piece that will surely be off the shelves by the time the event is over?
Before you become overwhelmed with concern about what the piece will do in the next ten minutes, find an artist and get their opinion. This is one of the best tips to knowing what the value of something is without having your appraiser standing right next to you.
It is commonly known that an artist is better able to actually know what is going on with the piece of art than anyone else may. In fact, they usually are full of advice and information that is very valuable.
Often, they know what is happening long before the museum curator or the critics do and that's where you will want to bank your trust in.
The fact is, with their education and their training, they can see things in a different light than you and I could which provides you with an ideal investment professional that doesn't even realize that is what he is.
Of course, if you do find someone that you like, becoming a friend and colleague with them can be helpful to you throughout the process. Part of art investing is to know either someone that knows art well or knowing art well yourself. If you don't have time to study art for the next four years in a college atmosphere, find a professional to help you to learn about the piece in full that already has this information.
It will pay off in the end to take the time to gather information. Take the time to appraise the piece, to find out the value of it and often just to make sure that the piece is an authentic product. You don't likely have thousands or even millions of dollars laying around that you can throw around anyway.
These scams are only the beginning. On the web anything is possible and it is easy to clearly deceive others about the true value of the piece. It is up to you, though, to find the value in something by doing your own homework first, before buying the piece at all.
Art Investing
Your goal is to have all that is required of you so that you can make the right decisions.
Art Investment
While it is not always something that is necessary to be found, as it can be rare, it is something to take into consideration when you do find an artist that has this benefit to his work. A limited series often implies that there is not a lot which instinctive people want to get their hands on. It will pay off when you invest in information and advice from an appraiser or any other source when that source is unbiased.
Therefore purchasing them now may be a very good investment strategy.
You purchase it for 0. Before you actually pay for the hefty price tag that is on the piece you are curious about the value of it. But, the simple question is, where do you find an artist to invest in?
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