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How To Make Investment In Art A Success

Despite the
covid-19 pandemic, the art market is attractive. But why invest in art? And how
to make this investment a success? Overview.

The art market
is growing strongly.

More than 1000
years old, the art market has long been a financial investment reserved for the
richest. It has become much democratized in recent decades, mainly thanks to
better information for investors via the Internet.

This strong
growth in the art market is also because it is a market with attractive
profitability.

Banks and
investment funds are also turning to the art market, not just individuals.

The development
of the museum economy

In recent years,
the number of open museums around the world has grown steadily. Indeed, more
museums were opened between 2000 and 2014 than during the 19th and 20th
centuries combined. This is called the development of the museum economy.

This trend also
strongly encourages the growth of the art market. Indeed, these new museums
have to buy many works, between 4000 and 5000 pieces on average.

To attract as
many visitants as feasible and generate profits, they are now ready to spend
millions on work. Another important point: these museums hardly ever sell their
acquisitions. All this, therefore, pushes the prices of the art market upwards.

Investing in
art: why it's interesting

Investing in art
can be a handsome investment. During the first quarter of 2021, more than
112,000 works of art were exchanged around the world. With the health situation
and the global pandemic, online sales have increased by 106% in one year.

The art market
is independent of stock market values. It has withstood all the stock market
crises that have taken place since the early 2000s, and it has performed better
than stock market investments. This is why it is attracting more and more
capital.

One rule
prevails in all cases: it is essential to invest long-term to achieve good
profitability. Indeed, as it is difficult to predict the evolution of the price
of work precisely, it is necessary to invest in the long term to smooth any
variations in the market.

How to succeed
when investing in art?

To make your
investments in art grow, it is essential to respect specific rules. Here they
are:

Traceability

The first
essential criterion to take into account when investing in art: the
authenticity of the work. Do not buy anything without a certificate of
authenticity from the gallery or the expert representing the artist.

The artist's
choice

It is
interesting to focus on works created by a listed artist. That is to say, an
artist whose at least one work has already been sold during a public auction
and who therefore appears in a sales catalog. You will be able to have more certainty
about the existing demand in the market.

An artist is
considered to have excellent average sales when he sells between 30 and 40
works per year. In terms of unsold, the average unsold rate is, instead, around
30%. Ideally, therefore, aim for an unsold rate that does not exceed 50%.

Finally, it is
recommended to choose an artist who sells well internationally. Observe
especially if the artist's works sell well in London and New York, the two
cities which generate more than half of the art market.

The format of
the work

It is
recommended to favor works more suited to apartments. You will be able to
resell them more easily because collectors will keep these works in their
homes.

Ancient, modern,
or contemporary art

For individuals,
ancient and modern art (works produced before 1945) is less attractive. Indeed,
the prices are exorbitant: finding a quality job for less than 5 - 10 millions.

The contemporary
art market (works produced from 1945 to the present day) is the most dynamic
segment of the Art market, particularly to NFTs.Finally, drawing and photography deserve your
full attention. You can acquire Abstract
Art London
by famous artists at lower prices.