A cost-effective Way To Invest in Art

3 minute read

1124% in less than two years is a pretty impressive number for an investment.

However, there is one problem: The initial investments in these examples were 40k, 17k, 11k and 22k, which are high amounts for most of us. If you want to diversify your art investments to spread the risk, you need quite a sum of money, especially if you also buy other assets.

Before you stop reading, because you don’t have 10k for just one piece of Art, I want to show you a cost-effective approach to investing in Art, that I found over the last few days while researching the topic. I jumped into the “Artventure” of investing in Art just a short time ago. By sharing my insights along the way, I want you to be part of my journey. I am a freelancing software engineer and data scientist, so my approach is data-driven without forgetting the emotional aspect of Art. Art is for our senses which makes it different to other investments. Currently, I am gathering data for analysis that I want to share soon with you. F Let’s get back to the approach of investing in Art with lower amounts of money. An exciting way is Limited Editions.

What are Limited Editions?

A limited-edition in printmaking, e.g. is a fixed number of prints struck simultaneously from one plate. No further copies will be produced from the plate. Each print is signed by the artist with a pencil and numbered. The numbering consists of the edition’s unique number and the total size of prints in the edition. E.g. 40/50.

KAWS Signed Limited Edition Print 40/50

The smaller the edition size is, the more valuable a single artwork is, because it’s rarer.

Limited editions also exist in Photography and Sculpture casting.

I am unsure how a seller proofs that a limited print is not a fake. I want to find out more about.

If you want to learn more about printmaking, you can check this Youtube video:

Printmaking Video Preview

In what limited editions should you invest?

Personally, I think you should invest in art pieces that you love. Money is the second part of the story. That’s what I also want to do. Over the next days, I search for artists that I like. I will focus on limited edition prints that are still affordable. My goal is a price range between $500-$2000. However, I must see from the data if it’s realistic.

If the artist is unknown, I want to spend less money on her artwork than on a piece from a more famous one. However, I am looking for a talented artist with high potential. There is only one problem with this. I am not an expert yet, which I hope will change one day. To solve the problem, I want to follow a data-driven approach: I will check how well-known an artist is and how many of her artwork was sold for what price to identify trends.

You can check how well-known an artist is by counting the number of followers on Pinterest or Instagram. Is there a Wikipedia entry for the artist? Only persons of public interest are “allowed” to have on. Along with some pricing data, I should be able to find promising artwork.

Where do you find limited editions?

I only want to invest in limited editions from artists, who are still alive. What’s also essential that I wish to have personal contact with artists. If they bring out something new, I want to be on the waiting list. If the waiting list is not too long and I am a quick buyer I hope to make bargains. Then I want to keep the pieces. Another advantage of this approach is that I can be 100% sure that the artwork is not a fake.

I don’t invest in Art on platforms, where I cannot be 100% sure that the artwork is not fake.

Summary for inpatients

A cost-effective way to invest in Art is limited editions which you can find in printmaking, photography and sculpture casting.

There are only fixed numbers of copies of the artwork produced by the artist. The edition is a set of original works intended for graphic reproduction. It’s made or supervised by the artist. Artists sign the copy with their signature, a unique number and the total numbers in the edition.

The lower the number in the edition is, the more rare and valuable a single piece is. However, the fact that there is not just one unique piece makes the investment more affordable.

Do you want to join me on my adventure journey to investing in art?

I will share all insights I gain with you