Earn Your Leisure Podcast: Episode Summary

Title: Art Investing for Beginners
Host: EYL Network
Release Date: April 26, 2025

Introduction to Art Investing

In this episode of Earn Your Leisure, hosts Rashad Bilal and Troy Millings delve into the intricacies of art investing, providing listeners with a comprehensive guide tailored for beginners. The discussion explores the motivations behind art investments, best practices, and the impact of collective purchasing on the art market.

Personal Journey into Art Investing

Timestamp [01:22]

Rashad Bilal (B):
"The first real piece that I invested in was a piece of art from South Africa from an artist named Nelson Mokomo. It was incredible... That was a lot of money. Just because we haven't really been taught the value... how much was it like $25,000."
Bilal shares his initial foray into art investing, highlighting how personal passion and emotional connection to art can drive investment decisions. He emphasizes the importance of investing in pieces you love, which not only adds aesthetic value to one's space but also fosters a deeper appreciation for the art itself.

Building the Collection

Timestamp [03:36]

Bilal:
"I realized I was like, I love this. I had just this genuine passion for it... We belong here too... African art, black artists in general, was something that I was like, okay, I love this. These stories are incredible."
Bilal discusses how his passion for African art and his connection to black artists fueled his expanding collection. He notes the significance of supporting artists directly and the cultural impact of such investments, which go beyond mere financial gains.

The Value of Art Investments

Timestamp [02:22] & [03:07]

Bilal reflects on the appreciation of his art pieces over time. For instance, a piece he purchased for $12,000 later sold at auction for $90,000, underscoring the potential financial returns of art investments. This trajectory not only validates his initial investment but also reinforces his strategy of aligning passion with financial prudence.

Art Collection Management

Timestamp [05:10] - [07:43]

The conversation shifts to the practical aspects of managing a growing art collection:

• Storage Solutions: Bilal mentions using specialized art storage services to preserve the integrity of his pieces, ensuring they remain in optimal condition.
• Display Considerations: He advises on the importance of proper framing, UV-protective glass, and strategic placement within one's home to prevent damage from light exposure.
• Collective Purchasing: Bilal elaborates on his experience with art collectives, where multiple investors pool resources to acquire high-value pieces. This approach not only makes art more accessible but also facilitates sharing the cultural and financial benefits of collective ownership.

Notable Quote: "When friends come over, they'll be like, your house is like a museum. And that makes me feel so good."
— Bilal [07:08]

Best Practices for Art Investing

Timestamp [10:28] - [13:36]

Bilal outlines several best practices for aspiring art investors:

1. Invest What You Can Afford: Emphasizes maintaining financial hygiene by purchasing art within one's budget.
2. Due Diligence: Encourages thorough research on artists, galleries, and the provenance of artworks.
3. Insurance: Stresses the necessity of insuring art pieces with reputable insurers specializing in art to protect against potential losses.
4. Education: Advocates for continual learning about the art market, trends, and the factors influencing art valuations.
5. Relationship Building: Highlights the importance of building relationships with artists and other collectors to gain deeper insights and access to exclusive opportunities.

Notable Quote: "Buy what you can afford and then do all the due diligence, the insurance and all that kind of thing to make sure you're protecting your asset."
— Bilal [13:00]

Legacy and Wealth Building

Timestamp [12:10] - [14:17]

Bilal discusses art investing as a means of legacy building, intending to leave a valuable collection for future generations. He relates art investments to other wealth-building assets like real estate and wine, positioning art as both a cultural and financial investment that can appreciate over time.

Notable Quote: "For me, it's legacy building. So this is what I'm gonna leave behind for my son, my goddaughters, my grandchild."
— Bilal [12:10]

Additionally, Bilal mentions the significance of donating art to prestigious institutions like the Smithsonian, which not only cements his legacy but also enhances the value of his collection through institutional recognition.

Conclusion and Final Insights

Throughout the episode, Rashad Bilal and Troy Millings provide a nuanced exploration of art investing, blending personal anecdotes with practical advice. They emphasize the harmonious balance between passion and financial strategy, encouraging listeners to approach art investment thoughtfully and conscientiously. By fostering a deep appreciation for art and understanding the market's dynamics, individuals can navigate the art investment landscape successfully, enriching both their personal lives and financial portfolios.

Key Takeaways

• Passion-Driven Investments: Invest in art you love to ensure personal satisfaction and emotional connection.
• Research and Due Diligence: Understand the artist's background, market trends, and provenance of artworks.
• Proper Management: Ensure artworks are well-preserved, properly insured, and strategically displayed.
• Collective Economics: Consider group investments to access high-value pieces and share the financial load.
• Legacy Building: View art investments as long-term assets that can benefit future generations.

For those interested in embarking on their art investment journey, this episode serves as an invaluable resource, blending practical guidance with inspiring stories from seasoned investors.