The Apple Gallery Art Investment Fund
Invest £1000 and you will get a guaranteed 23.2% return on your investment within a year
These days, many short and long-term investors look to diversify their portfolios by investing in different, even exotic, asset classes. Some prefer to put their money in rare coins and jewels, while others invest in fine wines. One investment class quickly gaining in popularity is artwork.
The myths about investing in art have always kept the average person from entering this potentially lucrative venture. “I don’t know anything about art. Investing in art is only for the rich. What if I get ripped off?” These are all legitimate concerns, but they can be quickly broken down by investing in a reputable dealer.
If you’re wondering whether it is feasible to earn a profit from investing in art, consider this: According to Art Market Research, the price of art has risen more than 1,000% in the last 40 years. Recent years have shown a consistent rise of 25% or more. These kinds of returns have the investment world very interested – not only are large and small investors starting to invest, but many art investment funds have already opened their doors and are ready for business.
No Market Fluctuations. We all know what a roller coaster ride financial markets can be. However, stock market corrections, volatility, and other financial fluctuations are nonexistent in the art world. This is seen as one of the biggest advantages to investing in art. The collector can sleep peacefully at night, without the worries that plague other investors.
To invest in the stock market, you research the company of the stock you want to buy, check the fundamentals, and look at earnings reports. If the investment makes sense, you log into your account and a few mouse-clicks later you own the stock. When investing in art, you have to familiarise yourself with a lot of information before making a purchase – this is what The Apple Gallery does for you.
What We Invest In
There are many types of art the Apple Gallery invests in. Novices tend to automatically think of paintings, but art spans a wide variety of media, styles, and classifications. Generally different types (or “disciplines”) include painting, drawing, photography, digital, mixed media, sculpture, prints, and even video.
The Apple Gallery deals primarily in originals. An original is a one-of-a-kind work of art. This is what most art investors purchase when speculating in the sector. Generally, it is the rarity of the original that justifies the high price. We specialise in smaller value pieces that we purchase at low prices in order to maximise our profit potential.
Simply put, your investment will be used to buy high quality Artwork which will then be sold at a profit. As each piece is sold the initial cost price of the Artwork plus 10% will be put into a secure fund. After 6 months the investor will get back their initial investment plus 10%. If after 6 months you choose to reinvest your initial sum (plus the 10% profit) you will get a return at the end of a further 6 months of 12%. This will give you a total return of £1232 over the year - a profit of 23.2 % on your original investment of £1000.
How We Buy Art
Before we even think about buying a particular piece of art we always consider a few things to maximise our upside.
First, we do our homework on the artist and style we’re targeting. We also note the difference between the primary and secondary markets. Artwork being sold on the primary market means that it has never been seen or sold before, generating buzz among art enthusiasts. By contrast, the secondary market refers to artwork that has been sold before.
Research The Artist
Generally, an artist with an interesting back story tends to generate more interest among buyers. We research the artist’s age, education, previous exhibitions, and awards. It’s possible to find a lot of the information from the artist’s biography at the gallery where the works are displayed. For a more in-depth understanding of the artist, an online search can turn up quite a bit more.
Research The Artwork
Before we buy a piece for our collection, a thorough understanding of it is paramount. First on our list is the question of its authenticity. Proving this is not difficult if the artist is still alive. However, if the artist is deceased, it can be problematic. The best way we protect ourselves is to obtain a certificate of authenticity from an expert, preferably the foremost authority on the artist. Next on our list would be obtaining a thorough appraisal of the piece in question. If a work of art is damaged or substantially restored, it can affect its value greatly.
Investigate The Dealer
Whenever we buy a work of art, the reputation of the source should always be open to extreme scrutiny. The confidentiality of the art market can make it very difficult to know the reputation of some dealers and brokers, especially the smaller ones. Researching the reputability of a gallery can be much easier. They feature their top artists, and information on past exhibits can be found on their websites and through word-of-mouth.
Where We Buy Art
When buying at auction we make sure we weigh up price, value, and condition, and adjust our bid accordingly. Aside from Christie’s and Sotheby’s, there are many good, small auction houses scattered all over the country and sometimes the best deals can be found outside the London area. When we purchase art at an auction, the “hammer” price is not the full price we pay. Anywhere between 20% and 30% can be added to our final bid. This is known as a buyer’s premium, and it depends on a variety of factors including price and provenance of the work.
Compared to an auction, a gallery is a much more relaxed environment to view, evaluate, and decide on our purchase. The majority do not charge a buyer’s premium, so the amount on the price tag is close to what you eventually pay. Some galleries focus mainly on the primary market, dealing with newer artists. Other galleries tend to focus on the secondary market, reselling artwork without necessarily having any ties to the artists themselves. Many galleries do both.
At art fairs we can browse, mingle with other art lovers, ask questions, compare prices, and evaluate. And, some of the offerings can rival works sold at the most prestigious galleries and auctions.
Artwork is being bought and sold on the Internet in astounding numbers these days. Elimination of the high overhead of galleries and auction houses is an added benefit of purchasing online. As with all Internet activities, we make sure a reputable gallery or dealer is behind the website before clicking the “buy” button.
Where We Sell
Over the past year The Apple Gallery has amassed a loyal client list of people who regularly buy through us. We can offer affordable rates often undercutting some high street galleries by as much as 100% making us extremely competitive. As well as selling online through our website, Etsy and eBay we also have a large social media presence attracting new customers every week. We occasionally sell at auction but to avoid the high ‘buyer premium’ we are more active in the direct sales market such as Art Fairs.
The Last Word
Investing in art is not for everyone but for many people the world of art is a passion. It’s a way to open a door and lose yourself in beautiful works from different countries, different disciplines, and different times.
Since its creation in 2018 The Apple Gallery has sold more than 500 pieces of original art from all over the world. With your help and investment we can continue to buy and sell high quality affordable art and make sure these beautiful pieces are made accessible to everyone regardless of background - everyone benefits.
Many enthusiasts regard art as a historical record of humankind, so open the door, invest in The Apple Gallery and begin your wonderful journey and make a profit!
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