Is Art A Good Investment?

Is Art A Good Investment?

Is Buying Art a Good Investment?

Yes, it is! The art market has shown steady growth over the last decade and is proving to be one of the best performing asset classes against traditional investment methods.

So How Can I Get Started With Investing In The Art Market?

The good news is you don’t have to be an art collector to start investing in art. You can start with one or even two pieces that you really love.

We recommend speaking to an expert broker to learn if art is the right investment type for you. Before you do though, familiarise yourself with the art world and what to consider these key areas before making an investment.

Familiarise yourself with the art world and consider these key areas before...

  1. Art Market Stats

  2. Market Accessibility

  3. Differences Between Art market vs Stock market

  4. Budget

  5. Type Of Art

  6. How The Art Market Works

  7. Expand Your Knowledge

Art Market Stats

How Has The Art World Performed Over The Last 20 Years?

Over the last several years, art has grown in value globally at a rate of 6 per cent per year.

In a study conducted by Artprice, blue-chip art, or art created by the most recognisable artists in history, has outperformed the S&P 500 by 180% from 2000–2018. 

Deloitte estimates the total value of art to be $1.7 trillion. Additionally, a recent 2018, Art Basil annual report estimated that global art sales reached over $67 billion. 

Global sales of fine arts and antiques totalled to $64.1 billion in 2019, Source: Kooness

Market Accessibility

How Difficult Is It To Invest In The Art Market?

Think you can’t afford to invest in art? Guess again.

At Smith & Partner, we aim to make collecting limited edition fine art prints, and the art market in general, more accessible for first time clients, with little or no experience. We also provide services for those familiar with the market. 

We specialize in giclée (zhee-klay) high quality prints that are produced in a limited number, within a series. This makes each print much more valuable and in demand. As a rule, rarer prints are more valuable.  Choosing blue chip art, or recognizable big names in art such as Claude Monet, ensure your print will be valuable for years to come. 

Differences Between Art market vs Stock market

What's The Difference Between The Art Market And The Stock Market?

Art can increase in value, just like stocks and bonds. An artist’s work may suddenly increase in value and be in demand. It is possible to see the price of artwork increase in as little as 12 months!

The fact that art is not tied into the stock market and its value is not dependant on it, makes art an incredible way to provide diversification in any portfolio.

Art Market vs Stock Market, Source: Europhoenix

Art is not a liquid investment like the stock market however, so it will take longer to sell, just like real estate.

Budget

How Much Should I Invest In Art?

Set a budget and stick with it. This should be an amount that you are comfortable with. One that you will not need in case of an emergency. As with all investments, make sure you can invest money that you are not afraid to lose, or that you can hold for the long run.

The best approach to art investment? Consider the aesthetic pleasure first and the financial benefits second.

If you would prefer specific advisory on how much to invest, speak to one of our brokers to discuss what a suitable amount could be based on your current portfolio size or investment capital.

Types Of Art

What Art Should I Invest In?

Investing in New and Emerging Artists

When investing in works by new and emerging artists be sure to check their professional background.  Have they held solo exhibitions? Is their work part of private collections, galleries, or museums? This will give insight into the future the artist’s work has. Sign up for a consultation.

More Blue-Chip Art Investment Ideas

For investors and collectors Smith & Partner has a wide selection of blue-chip art to choose from. 

The words 'blue-chip' are often used in business as a means to describe established and affluent companies, whose value can be identified on a universal scale. Likewise, 'blue-chip art' are pieces that have been created by the most widely recognised and prolific artists in history.

These works are authenticated by their high sale value and demand in the market and have produced high returns for many of Smith & Partner's calculated investors.

How The Art Market Works

Understand the Two Art Markets

There are two markets in art, the lower end, and the higher end. The lower end market is more volatile. When the economy is booming it skyrockets. When it falls, so too do the art prices.

Then, there is the high-end of the market that is more stable. Why? The high-end market tends to ride out the fluctuations. They know the value of art will increase so they hold on to it with a long-term goal in mind.

The Long-term Investment

Profits will not happen over night. Many experts recommend holding art for 10 years or more. 

Expand Your Knowledge

Research Into the Art Market

Read about art in magazines, books, and newspapers. Watch television shows and DVDs about art. Learn as much about it as you can.

Visit auction houses or view top auction houses online, such as Sotheby’s. Look at the prices that various art fetches. Educate yourself and learn what you like.

Tour through public galleries and museums. Be sure to attend large art exhibitions that interest you. This is a way to view brilliant art up close. You will see pieces on tour from galleries all over the world, that you might otherwise not get a chance to see.

Locally, visit privately owned art galleries, such as our showroom, S&P Gallery. Talk to the knowledgeable staff about what you like. They will be able to introduce you to artists with similar styles. View our extensive collection of limited-edition fine art prints. Sign up for a consultation.

Attend art exhibits featuring local artists, to learn more about new and emerging artists. Here you will have an opportunity to speak with the artist directly.

Enlist An Art Broker

At Smith & Partner, you will have a personal broker who is dedicated to you. Learn more about market insights and best practices in the industry. 

Your broker will compile a bespoke collection of works from our catalogue. Then, you will receive art market news of trends relating to your portfolio. We will also advise you on the best time to sell your artwork.

Is buying art a good investment? Yes! We will help you to make the most of that investment. 

Download our Investment Guide.