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.

Art Compass - Top 100 Artists* and their Growth

This year's Art Compass 2022 by Capital provides insights into the art market and evaluates the most important artists. The ranking of the current top 100 contemporary artists* shows how well the selected positions are developing and how relevant individual positions are.

Once again this year, German contemporaries have prevailed and are leading the world. Gerhard Richter continues to lead the list with a margin of 38,850 fame points, well ahead of video and installation artist Bruce Nauman. Georg Baselitz and Rosemarie Trockel follow in 3rd and 4th place. However, the biggest points winner in 2022 is Tony Cragg: the British artist, who lives in Germany, can boast an increase of 7,300 points this year and comes in 6th place.

Regardless of such rankings, we select artists and works with our own process (qualitative & quantitative) and through our partnership with artnet (use/analysis of databases + you have to buy the right works) and are fully in the spectrum of such rankings with positions like Richter (1), Baselitz (3), Cragg (most sought-after newcomer). 🚀

Such rankings underline that (blue chip) art cannot only be evaluated subjectively and that different influencing factors lead to an increase in value and relevance.

#kunstmarkt
#investment
#bluechipartists