Invest in Paintings (visual Art)

Was posed a question on whether the price of a painting will appreciate over time.

Rather difficult to answer this question, but I will try...

I guess we will have to look at art from an emotional standpoint, then financial, and finally, investment. Why do I say that?

An investor will not ask such a question. Very likely, the investor would have studied and followed an artist from the time the artist launch his/her career until the point where the person buys and store with the 'knowledge' that it will appreciate over time. I know of one of such investor (investment manager) in Singapore who has collected a couple of thousands of paintings.

Such a question normally comes from someone who is starting out on this route. As such, I would recommend that he/she first like the painting. One that the person can proudly display at home or in the office and enjoys it every day.

Then, of course, it has to fit someone's budget (or money one is willing to spend). In Malaysia, some people will not blink an eye spending RM20,000 on a sofa that normally do not last more than 8 years, or some minor renovation to the house costing more than RM300,000. When it comes to paintings or pictures, they will flinch at anything more than RM1,000. This might be a global phenomena, but I will need to find that out over time.

Last, but not least, the investment potential. I guess investing in a painting is very much like investing in a property. You never really know, but make an educated guess. That's is when a gallery comes in. Some artists might have made a name, but the artist also have good and bad days. Therefore, some paintings are better than others, and more likely than not, a gallery will be able to filter the 'not so good' ones out.

This is only my view although I believe it is rather universal. Always ready to see another point of view.. any takers?