Art investment is similar to investing in anything else. You want to buy at a price lower than the price you sell it. For most people this isn't the primary reason for purchasing a nice piece of artwork, but if you ever change your opinion about that piece you bought, want something new, or simply need a couple extra bucks, selling your investment could be an alternative.

Art and collectibles trading is subject to the same market pressures as other mediums of investment, but there are some big differences. Subjective factors play a key role in the price. These factors includes condition, authenticity, the visual appeal of the work, and even the people who owned the painting prior to you.

But the best kind of investment is one you want to own. You will know more about it, enjoy having it, and are probably more likely to sell it for a higher price upon sale date.

Real life examples

Picasso's "Boy with a Pipe" sold in 1950 for $30,000 and again in 2004 for $104 million.

"A Bold Bluff", one of two Cassius Marcellus Coolidge's "Dogs Playing Poker" paintings was painted in 1903 and was auctioned off in early 2005 at Doyle New York's annual Dogs in Art auction. Before the auction the senior vice president of Doyle estimated the value of the painting at $30-$50k. The winning bid was $590,400.

The Mei Moses Fine Art Index, put together by the two economists at NYU, shows the paintings in their index outperformed stocks and bonds over the last 130 years.