Add art to your investment portfolio with key insights from the experts at Newcastle’s Hancock Gallery.

Until recently, art investment was seen as reserved for the privileged few. Yet, modern day art investment and collections are no longer out of reach. With the right mixture of knowledge, support and energy, securing a fruitful and rewarding return is possible for anyone when it comes to investing in art.

Investing in an individual piece is often the initial attraction to purchasing art, offering the opportunity to proudly own something unique that stands out from mass-produced prints found on the high street. However, owning art also presents substantial opportunities beyond mere aesthetic appeal, as it can serve as a viable investment avenue.

With a multi-million pound global marketplace, art is a profitable investment that consistently outperforms other assets classes. It is stable and resilient to economic shifts, maintaining strong sales even during challenging times, while assets like gold and oil have faltered.

Thinking about investing in art? Hancock Gallery reveals benefits of – and top tips for – starting your search.

Exploring emotional and financial value

“Art is a passion asset. Just like fine wine, high-end time pieces and classic cars, art has the power to captivate your imagination and provide tangible returns such as excitement and enjoyment, as well as provide great investment opportunity,” says Chris Morgan, gallery manager at Hancock Gallery.

Purchasing art as an asset can be a rare opportunity for anyone and having the ability to physically enjoy art presents itself as a huge secondary benefit to your investment.

Some investors may seek out artwork that solely poses a financial gain – purchasing pieces that can promise a hefty return in coming years with little care for aesthetic or concept – while other collectors make their investment decisions by seeking out work they enjoy, either for a specific aesthetic, artist they support and so on. They are then ready to make an informed decision based on the current market value and expected increase in value.

Should you choose to invest in something you love? Or should you aim to be profit-savvy and chase the numbers? Both motives are equally valid in their own respects and this is something worth considering when you’re looking to purchase.

Continuous market growth

Many first time art investors may ask – is this really worth it? The simple answer to that is, yes.

The global art market poses consistency and a continuous level of growth to give you the right assurances about your investment, with 90% of wealth managers recommending including art in a balanced investment portfolio – an increase from 80% from 2023.

This could be down to the fact that an artist’s work can significantly increase once they are deceased or retire from their creative practice, making art one of the most sound investments for those expecting a return. 

You may also want to consider where exactly in the market you want to enter. For example, beginning with a limited edition piece could be an excellent way to dip your toes in, as this can accommodate a range of budgets and become rewarding in time.

L.S. Lowry is an excellent example here. The late Manchester artist’s work has recently sold for millions, which does appeal only, perhaps, to the unlimited budget. However, signed limited edition prints of the same work offer a fantastic starting point to a well-considered collection.

These signed limited edition prints, if looked after well, present a fantastic opportunity for an almost guaranteed increase in value. Let’s say 50 limited editions exist worldwide. Over time, those pieces may be lost or damaged in some way, rarifying your own edition and therefore increasing its value significantly. Not to mention the ability to purchase a representation of a famed work at just a fraction of the original’s price.

Art investment essentials – what you need to know

Research, research and more research

Research is key – especially if you haven’t invested in art before. Before making any purchases, you need to do your research. Think about what kind of art you want and the space you’re going to hang it and look around for the best places to find it.

Most importantly – don’t rush into your decision. Take the time to browse and learn about your ideal piece before making the purchase.

The internet is fraught with inaccuracies and misleading information, so be sure to talk to a specialist who can advise you on your purchase.

Hancock Gallery’s gallery manager and advisory team have nearly 15 years’ experience in guiding art-lovers and can provide insights tailored to art investors, your preferences and your investment goals.

Consider your budget

Falling in love at first sight with a piece of artwork can make you forget all about the budget you set, but you MUST remember your budget. If you are looking to make a return on your initial investment this is a major part of the decision making process. This is another reason why talking to a specialist is beneficial – they can advise you on pieces within your budget and know the market inside out.

Keep your space in mind

When you’re buying art, it’s imperative to factor in the dimensions and aesthetics of the space you are looking to add to. The last thing you want is a monster of a piece arriving that won’t fit through your door, never mind fit the wall! Measure these dimensions and think about how your piece will fit in with your interior design.

If you’re unsure of how a piece will fit in with your space and need to see it before buying, get in touch with the gallery to see if you can arrange a try-before-you-buy fitting with your chosen piece.

Ensure authenticity

So you’ve done your research and found the perfect piece that fits your budget and your home, but don’t rush into buying just yet!

This is an important step – just before you make your purchase, ensure that the artwork comes with a Certificate of Authenticity. This is an official, signed document that ensures your artwork is legitimate, and it’s just as important as the artwork itself.

Whether you’re purchasing as a first timer, as an art lover or adding to your art investment portfolio, the authenticity certificate is always an essential part of your purchase. 

Additionally, you can find our carefully curated and informative guide on our website to help you navigate the world of art investment with confidence.

At Hancock Gallery we are proud to employ a team of seasoned experts in the art world. Whether you’re a first time buyer or looking to add to an existing collection, our specialists are happy to provide you with guidance, no obligation home approvals and information on finances. Book your consultation today.