Art has been a part of human civilisation for centuries. It is a form of expression, a reflection of culture, and a source of inspiration for people around the world.
But beyond its cultural and aesthetic value, can art also be a smart investment? In a world where financial assets like stocks and real estate dominate the investment scene, it’s worth exploring the potential of art as an investment.
In short, yes – art can be a good investment. Art has become an attractive option for investors looking to diversify their portfolios and potentially grow their wealth.
In this blog post, we’ll delve into the art market, its dynamics, and the factors that make art a unique investment opportunity.
What Makes Art a Good Investment?
Art can be a great investment – however, the best art to invest in can depend on a wide range of factors. For example, the type of art, the provenance, the artist, and of course, the quality of the artwork.
The Type of Art
Art comes in various forms, from paintings and sculptures to photographs and art prints. Each type of art has its own place in the market.
For example, fine art, which includes paintings and sculptures, often holds more significant potential for appreciation compared to prints or photographs.
Blue chip artworks are considered top-tier investments. They typically consist of iconic pieces by renowned artists. These pieces of art have a track record of maintaining or appreciating in value over the years. Blue chip art pieces are often seen as a safe choice for art investors.
If you’re a beginner to the world of art investments, blue-chip pieces are generally a good choice. However, they can be more expensive to purchase. Investors often compare blue-chip art to the stock market – both have the potential to grow in value over time.
However, it’s important to note that while stocks can provide liquidity and are easily tradable, art pieces can be illiquid assets. Selling a work of art may take time and effort – it often involves finding the right buyer and going through an auction or gallery. This is why art is considered a medium to long-term investment.
The History of The Art
The historical significance of an art piece can have a huge impact on its value. Art with a notable history or a connection to famous artists tends to appreciate more over time.
Understanding the artistic movement or period an artwork belongs to can provide insights into its potential value. For example, certain art movements, like Impressionism or Abstract Expressionism, have a proven track record of value appreciation. Provenance is key when it comes to choosing investment-grade artwork on the secondary art market.
This refers to the history of the piece – a list of people who have owned the artwork since its initial creation. This can include famous art galleries, notable art collectors, or renowned museums.
If a piece of original artwork doesn’t have a well-documented history, it may not be valued as well as it should. However, if the history is verified and well-documented, it will usually be considered more valuable.
The Rarity of The Art
The general rule of thumb is that original art pieces are more valuable than reproductions or prints. The rarity of an artwork, including limited edition prints or unique creations, can make a huge difference in its market price. For example, Banksy’s signed prints can sell for hundreds of thousands of pounds – but his mass-produced, unsigned prints can cost as low as £3,000.
The Reputation of The Artist
When you buy art for investment purposes, always consider the reputation of the artist. Take time to conduct thorough artist research – especially if you’re purchasing artwork from up-and-coming artists. This can help you to track the trajectory of the artist’s career effectively.
Choosing to invest in new artists can be risky, but there’s always a chance that the risk will pay off. New artists don’t have a history of success to go by, so choosing to invest in new artists can be risky.
However, there’s always a chance that the risk will pay off. New artists’ artwork will typically be more affordable – but always seek professional advice beforehand.
Blue-chip artwork and art created by established artists is generally a much safer investment. This is because you know the history, and you can make more accurate predictions regarding the value of the artwork.
Keeping on top of market trends will work in your favour. This can help you to understand what artists are popular now, and which artists may rise in popularity in coming years.
The Quality of The Artwork
The physical condition of an art piece is crucial. Art collectors and investors place a premium on well-preserved, unaltered pieces. Preservation is key when investing in fine art. Choose artwork that has been preserved well – and once you purchase the piece, be sure to take measures to protect the artwork.
Ensure that the art you collect is stored well – this will help it retain its value. Many people choose to store their art collections in professional storage facilities.
Advice From Experts
Buying art is more than just browsing an online gallery, falling in love with a piece, and making a purchase. The art market can be complex, with varying factors influencing the value of art pieces. This is where the role of an art advisor becomes important.
Art advisors are professionals who guide buyers and art investors in their art purchases. They possess in-depth knowledge of the art market, trends, and potential investment opportunities. An art advisor can help you make well-informed decisions, identify valuable art pieces, and navigate the intricacies of the art world.
The Benefits of Art Investment
Historic and contemporary art can be a great investment. First of all, it’s something you can enjoy. As a tangible investment, you can enjoy art without affecting the value of the piece.
One of the key benefits of art investment is the fact that art generally retains its value over time. Unlike most other asset classes, the art market stands tall against economic uncertainty – and can be a great way to diversify your investment portfolio and mitigate risk.
Art can make a great hedge against inflation. The art market had an average return of 7.5% per year over the last 38 years. It’s an attractive investment option for investors around the world. There’s a reason why so many ultra-high-net-worth individuals invest in art.
How Can I Invest in Art Today?
If you’re wondering where you can invest in art today, there are several avenues to explore. Art has become an increasingly popular investment choice, so there are more options than ever.
You can start by looking into art auctions, which are events where valuable art pieces are bought and sold. Auction houses can be a great way to find unique pieces with the potential for appreciation.
Art fairs are another option. They often feature a wide range of artists and artworks, making it a great place to discover emerging talent. You can find pieces that resonate with you and have investment potential.
Online art platforms have made art investment accessible from the comfort of your own home. You can explore a diverse range of art, compare options, and make purchases online.
Lastly, art galleries like Quantus Gallery offer a curated selection of art pieces for investment. We provide expert advice and a chance to view and purchase art in a physical setting.
So, whether it’s art auctions, art fairs, online art, or art galleries like Quantus Gallery, there are plenty of options to consider when you’re looking to invest in art.