Why Invest in Art? Investment Art Round Up
Investing in art is something which has gone on for decades and has proven to be extremely profitable, outperforming the S&P500 for years on end. In fact, blue chip art has beaten the S&P500by over 250%, but why has investing in art been so good and so successful over the past 10 years? In this article we’ll look to explore why investing in art is a good idea and how you can do it.
Art is Not a Normal Commodity
Art isn’t a commodity where you can see its value increase or fluctuate daily, like you can measure with the stock market. Art is in a league of its own, which simply won’t fluctuate with whatever economic changes are occurring in the world. Most art tends to hold or increase in value, this is when you invest in the right artists, of course. So, who are the right artists?
Top Artists to Invest In
Picking the right investment artist isn’t easy, but with enough research you can find artists that are increasing in value. Researching artists can be as simple as finding out how much their art value has increased over time, trends tend to show the right artist to invest in. For example, Philip Grey has increased in value by 10% in just two years. Fabian Perez has seen up to a 77% increase in 10 years.
What to Consider When Investing In Art
The key thing you need to consider when investing in art is that art is a long-term investment.
Think Long Term Investment
Art investment is for patient investors with a time window of 10 years or more, so think long term. Many art investors include paintings in their estate planning as assets to pass on to their descendants.
Art Won’t Lose Value
Art is less likely to lose its value while you are enjoying it. An Expensive car collection typically loses value, the more you enjoy it, the less it's worth overtime. With art, you can enjoy it every day and not worry that you are contributing to any losses. Keep your investment art safe, clean and in good condition, and you’ll have a long term asset that's increasing in value year on year.
Return on Investment Artworks
The average return on artwork has consistently returned at least 7.6% to investors and outperformed the stock market in 2018. According to a 2020 report by Art Basel and UBS, the art market is now worth $64.1 billion.
When to Sell You Art Collection
The art industry is the biggest creative industry which is bound to give you a sound return and never fade with age or popularity. It is advised to hold, however as a demand is created for an artist, their value will increase. Meaning a window of opportunity to sell your work can pop up at any time. Keep a close eye on trends and changes in the art market to see when is the correct time to sell.
Blue-Chip Artists VS Emerging Talents
The obvious stance with investing in art is to start with blue-chip artists, such as, Banksy, Warhol, Harring and Basquiat along with many other blue-chip names. These artists have outperformed the FTSE by 350% since 2000. However, another great route is to invest in names who are emerging or acclaimed names more nationally, their works tend to increase dramatically, and you can make a return of more than triple.
Trust in Your Investments
The main point when it comes to investing, is trust, trust with the gallery you are working with and your art advisor. Many may say you don’t have to love the artwork to invest in it, however we believe you should enjoy your artwork. Art is not only a wise investment, but it is part of our culture and life.
Artists create their pieces with the intent for you to take something away from them and enjoy.
The Future of Investment Art
Currently in this market, contemporary and modern art has seen a huge boost in demand for this genre and like most things art also has its trends. We have now stepped into an exciting digital age of the artworld with NFTS and this just shows the progression and forward thinking of the industry, and it will soon become a lifeline in our modern world.
Rounding up Why You Should Invest in Art
Art is a solid choice for anyone looking to invest, with large and long term returns it can be very profitable. However, take time to consider your artist investment, speak to an art gallery like ours and make sure you enjoy the piece you’re investing in. You don’t have to love art to invest in it, however, it does help in picking the right artist and with performing research into the market.
If you need help with investing in art, get in contact with us and we can help you invest in this exciting industry.