Investing in Local Art

Posted by Elizaveta Zhurkovskaya on

We want to thank The Tanya Crepulja Team for featuring Kefi Art Gallery in their resent blog!

When you think of buying investments, your mind probably goes to real estate or the stock market. You probably don’t think of art. According to Forbes, the pandemic spurred more innovation and risk-taking in the past 18 months than in the last ten years. Art is quickly gaining popularity as an investment tool, for four reasons:

To create stability. The value of art is entirely independent of stocks, bonds and other commodities. Diversifying your portfolio by adding art is one way to add stability during uncertain times.

To have something tangible. Some investors like having something real that they can see, touch and hold.

To fill your home with beauty. While art can be a tremendous investment that could potentially grow in monetary value, the real reason for buying it is because it resonates with you on a deep, emotional level. If a piece makes you happy or brings you comfort, your investment has already paid off, no matter what happens in the market.

To support artists and culture. Art is a priceless part of our culture. Every time you buy a painting, sculpture or carving, you’re helping to create a heritage for future generations to appreciate and cherish. 

 

The Keys to Successful Investing in Art

If you’re buying art for its beauty and to support local artists, you can never go wrong. The value of a beautiful work goes far beyond its monetary worth. However, when investing for the purpose of growing your portfolio, there is always going to be some element of risk. How do you balance your love of art with keeping your portfolio as healthy as possible? 

These tips will help you manage and maintain your portfolio to give yourself the best chance of success. 

Research 

As with any investment, it’s essential to investigate thoroughly before investing significant money into a piece of art. Questions to ask yourself include:

Who is the artist? The secret is to find an up-and-coming artist whose work will likely increase in value over time. 

Does the artist have any previous works that have succeeded in the marketplace? While past performance is never an indication of future value, it is a good sign of future potential.

Invest for the Long-Term

It’s important not to get caught up in the excitement of the latest craze when choosing any sort of investment. For example, you may have heard of NFTs (non-fungible tokens) selling for ridiculous amounts of money, sometimes for millions of dollars. 

And, of course, everyone has heard a story where someone bought a piece of art at a garage sale that turned out to be worth a fortune. Stories like these are fun, but hoping for a short-term gain on an art investment is like hoping to win the lottery.

Investing for the long term is a much wiser strategy and far more likely to pay off in the future.

Understand the Risks

Every investment vehicle involves risk, and art is no different. You can manage this risk by understanding your tolerance and diversifying your portfolio accordingly. If you buy a sculpture from an unknown artist, balance it out by investing in a blue-chip piece from an established name.

Invest in Art as Part of Your Strategy

Investment in art is a great addition to your portfolio, but should never be a standalone strategy. It’s always better to diversify by adding other tools to grow and protect your wealth. While we always recommend talking to a financial expert, it’s well-advised to balance your portfolio with a mix of investment tools to ensure your success in the long term.

Now that you know why art is a great investment, let’s take a look at some of our favourite galleries who are supporting many of our local artists.

Kefi Art Gallery

Founder Liza Zhurkovskaya created this virtual art gallery primarily to promote female Canadian artists. For more than seven years, Liza worked directly with clients to help them buy and commission art and has brought hundreds of artworks to the public eye.

In 2020, she started the Kefi Art Gallery to contribute to Toronto culture and help people surround themselves with the beauty of art during the pandemic lockdowns. 

You could spend hours browsing the works of hundreds of Canadian and international artists. Whether you want the perfect piece to invest in or simply to decorate your house with beautiful originals, Kefi Art Gallery is the place to start.

 

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