Why you should invest in art 📈
Few people know how attractive investing in the works of selected artists can be. Many others are often deterred by the supposedly high barriers to entry - such as the capital required, the network or the know-how. As a result, they miss out on an attractive, safe and, above all, exciting asset class and a promising investment. I'll explain why pretty much everyone should invest in art.
🖼 The art market
Similar to classic markets, one can also notice ups and downs in the art market. However, the volatility is nowhere near as pronounced as in the stock market, for example. This is because art is a medium- to long-term investment; holding periods of three to five years are quite normal, which means that short-term macroeconomic effects have less of an impact on the blue-chip art market.
📈 Art as an investment
The fact that it pays to invest in art is particularly apparent when comparing the art market with the stock market. The increase in value on the art market can be quantified particularly well with the help of the ArtPrice100. This index reflects the development of the 100 most important artists on the art market and can be used as a comparison index to the S&P500.
Looking at the average annual growth rate in the period from 2000 to 2022, it is noticeable that the ArtPrice100 (7.46%) outperforms the S&P500 (6.01%).
The ArtPrice100, art as an investment, has been able to hold its own against the S&P500 over the past decades, despite the global economic crisis, low interest rate environment and Corona pandemic, and demonstrates how promising art is as a value investment.
💰What art to buy
There are various motives for investing in art or buying works of art. If you want to invest in art that is highly likely to go through a large appreciation, works by blue chip artists and established contemporary ones are suitable. Their reputation has been established for years, and the demand for their works is correspondingly high and stable. This makes them a tendentially safe investment with good appreciation.
#investment
#kunstmarkt
#bluechipartists
Do you already invest in art? If yes, in which artists?
If no, what are your reasons for not doing so?
You can find the link to the full article in the comments.
