A few things to keep in mind before acquiring art

Art as an asset has to have a long term investment perspective. Here are a few things to keep in mind, though:

• It makes sense to approach experienced art advisors to understand the intricacies of the art market. They obviously are better placed to carry out a detailed research and review of recent auction results.
  
  
• Expert inputs are indeed crucial from the point of view of understanding artistic significance and market potential of a particular piece. Of course, you may conduct your own study of the art market.
  
  
• Research regarding an artist, established or upcoming, gives definite clues to the intrinsic value of his work. It involves a thorough documentation of aspects such as the artist's age academic qualifications; awards, citations, scholarships received; participation in national international shows and workshops; subject matter of the work; ability to explain it and, of course, the thought processes, technique and style of work.
  
  
• Aspects like buyers’ list, critics’ perception of the artist and association with prominent art galleries also need to be considered.
  
  
• Established artists have sustainable value. On the other hand, younger artists have higher risk/higher return.
  
  
• It is possible to track a particular artist’s growth in terms of market valuation by comparing past and prevailing prices for his or her works. Evaluate the asking price for each work of art.
  
  
• Establish the fairness of the price quoted. Know what to ask sellers to find out basis of art prices. Use price references by tracking an artist's sales history, analyzing relevant price data, and assessing an artist's potential in the marketplace.
  
  
• If possible, consider the artist’s international presence or exposure since it represents the future promise.