Is it worth investing in art?

Art is a long-term investment, and while the art market can be stable or show large returns on investment during boom times, it is one asset that can easily plummet in value during seasons of recession.

Is art a good investment 2020?

The art market has seen both peaks and valleys, but it consistently returns 7.6% to investors, according to one price index, 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[1].

Is art a high risk investment?

But, although some art investors manage to get high returns on their purchases, investing in art is, in fact, a high-risk endeavor. Art investments carry a wide range of risks and expenses that many people aren’t aware of when entering the market.

Is art an asset or investment?

Art as an asset is attractive over the long run as it is a store of value that generates moderate positive real return. Art has also a low correlation with stocks and bonds which offer diversification possibilities.

Which artists should I invest in?

8 Contemporary Artists You Should Invest in Right Now

  • Alex Da Corte. Alex Da Corte is an American multimedia artist, known for his site-specific installations, photography, video and sculptures.
  • Michael Dotson.
  • Chad Kouri.
  • Matt Lambert.
  • Katherine Bernhardt.
  • Trudy Benson.
  • Nathan James.
  • Cui Jie.

How can I increase my art value?

10 Smart Ways to Market Your Art so It will Increase in Value

  1. Raise your artwork prices.
  2. Include testimonials in your marketing materials.
  3. Talk about the benefits and solutions of your art.
  4. Offer bonus items with your artwork.
  5. Offer a great guarantee.
  6. Handle your art with care.
  7. Promote your value as an artist.

Is art considered an asset?

Art is most certainly an asset in the broadest sense of the word. Its aesthetic, cultural or historical value can be limitless. Sure, there are many examples of art works that have been sold for much more than their purchase price over time, but these are the exceptions, rather than the rule.

How do art funds work?

Art funds are generally privately offered investment funds dedicated to the generation of returns through the acquisition and disposition of works of art. They are managed by a professional art investment management or advisory firm who receives a management fee and a portion of any returns delivered by the fund.

What are the risks of investing in art?

Like fashion, artists and their work go in and out of style, affecting the resale value and return on investment. Art acquisition comes with considerable extra costs, such as commissions and insurance. Perhaps the greatest risk, however, is that there’s always a chance of forgery, theft or damage.

Can you invest in an art investment fund?

An art investment fund, similar to a mutual fund, engages in the buying and selling of works of art for profit. However, many art investment funds charge hefty management, storage, and insurance fees that can eat into your profits.

When is it a good time to invest in art?

Art is a long-term investment. Profits from art won’t happen overnight. Experts recommend art investment 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.

What’s the average return on an Art Fund?

Art has been emerging as a new asset class for the well-diversified portfolio. The reported returns are enough to catch anyone’s eye: the index of fine art sales, used by art advisors to sell art funds, shows an average annual return of 10% over the past four decades.

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