As a kid, I visited many art galleries and museums while travelling through Europe in a caravan with my parents. However, I found it quite BORING. My sister, on the other hand, loved it, because she was painting by herself. I wanted to see soccer stadiums instead, which is a bit embarrassing to mention today.
I am 51 now, and my attitude about Art has changed. It changed last Sunday. What happened?
A friend of mine started investing in Art a while ago. I have the feeling he does it just because of the money. I was sure it wasn’t about me because I believe you need a passion for something you want to invest in and you must understand it. In case you invest in Bitcoin, you must have a basic understanding of what a blockchain is, and you must believe in the concept of a decentralized money system. The same with ETFs: You invest in clean energy because you want a change. Money is only part of the investment story if you are a responsible investor with a clear vision.
My friend sent me several how-to-invest-in-art-videos over the last few weeks that I just ignored till last Sunday. I was bored, so I opened one of the videos: A guy showed how you can get limited edition prints cheap and how you can sell them for a higher price. Buy low, sell high. Sometimes for a 600% return. It was a bit weird that someone could buy Art like bitcoin and stocks with no emotions. What I liked about the video were all these lovely prints. For the rest of the day, I was checking the web for different artists for their work. Lately, I was very stressed, full of FOMO and greed, because of the feeling that I had cashed out my Cryptos too early. Checking the art pieces was very calming. I then had a strong desire to visit art galleries the next day. Unfortunately, all the art galleries in Germany are closed right now, because of the pandemic.
I decided that I also want to invest some of my Crypto-cash in Art. Here are the reasons for that decision.
1. Art produces peace of mind
I believe that buying a piece of art that you like is therapeutic. From time to time you enjoy holding it in your hand, you discover new aspects while looking at it. Investing in a piece of art is like meditation: you stay in the moment. It’s a warm investment with your heart.
However, it can still be a profitable investment, as there are substantial price increases. I wonder what happens when you have a strong emotional connection to an art piece, that increased 1000% in price. Do you sell it or keep it?
2. You support artists with your investment
During the corona crisis, we learned how important the culture scene is. Many artists, actors, and musicians struggle while we miss going to concerts, the theatre, and museums. They are a crucial part of society. With your investment in Art, you support the culture scene. It’s called responsible investing.
3. You diversify your investments
We all know how important it is to diversify our investments. Especially in these turbulent times. Stocks, Commodities, Cryptos, Real Estate. Art is another asset class to reduce your risks with the disadvantage that you have to keep somewhere. It’s more like owning physical gold, silver or diamonds.
4. You invest into something, that is not correlated to other assets
Art is not correlated to other kinds of investments. Its price is not linked to the price of commodities, stocks or Cryptos. Therefore, it’s a perfect investment in times of high volatility.
5. An investment that increases your live quality
Art is an investment you can enjoy while sitting in your living room or office. The sculpture in the corner in the entrance or the lovely print at the wall in your living room brings pure joy. It makes it different from other investments.
I want to invest in art because it’s a responsible investment in something that combines joy with profit. Over the next weeks, I want to look for art investments from artists I like. To make it a profitable investment, I will follow a data-driven approach to find art pieces that also have the potential to pick up in price.
Do you want to be part of my adventure of investing in Art?
Yes, I want to be part of the “Artventure” of investing in art.