Nowadays, some investors prefer to put their money into currencies and securities, while others are looking for less risky and less stressful ways to invest. Among the most attractive investment tools in 2022 are art objects.
However, before buying paintings by fashion artists and conceptual art objects, you need to consider several important points so that the picture is not only pleasing to the eye, but also generates income in the future.
According to a report by the consulting agency Knight Frank, art has taken seventh place in the ranking of the most attractive luxury goods for investment over the past 10 years. During this period, the investment attractiveness of art objects increased by 75%, while the leader of the rating was collectible whiskey, the price of which increased by 428%.
Nevertheless, there is a positive trend in the art market. In particular, the two largest auction houses - Sotheby's and Christie's - reported record sales of $7.3 billion and $7.1 billion, respectively. According to statistics from the All Art Index, sales worldwide grew by an average of 13%.
As before, the main share of this "pie" in art falls on the works of old masters and legendary artists. For example, in 2021, the most expensive painting was Pablo Picasso's famous 1932 work "Woman Sitting at the Window", for which the new owner paid $103 million.
In second place was Jean-Michel Basquiat's 1983 masterpiece In This Case, which sold for $93 million. Also at the auction was sold the painting "Diego and I" by the Mexican artist Frida Kahlo for a record price among the objects of Latin American art, for the first time put up for auction in 30 years. Experts note that every year only a few such works of art of the highest quality are put up for auction.
Artists whose works are leading at auctions and constantly increasing their value are in great demand among investors and art lovers. They are known as "blue chips" and include geniuses such as Andy Warhol and Mark Rothko.
In 2021 and 2022, investors showed particular interest in the works of Russian avant-garde artists such as Kazimir Malevich, Wassily Kandinsky and Marc Chagall. The collection of billionaires Harry and Linda Mucklow, which included works by artists of the XX century and contemporary art, set a record value in the history of the modern art market, amounting to $ 676 million.
Every year, "red chips", that is, works of ultra-modern artists, are becoming increasingly popular in the art market. Their prices are rising faster than the prices of famous classics.
Artists whose works are leading at auctions and constantly increasing their value are in great demand among investors and art lovers. They are known as "blue chips" and include geniuses such as Andy Warhol and Mark Rothko.
In 2021 and 2022, investors showed particular interest in the works of Russian avant-garde artists such as Kazimir Malevich, Wassily Kandinsky and Marc Chagall. The collection of billionaires Harry and Linda Mucklow, which included works by artists of the XX century and contemporary art, set a record value in the history of the modern art market, amounting to $ 676 million.
Every year, "red chips", that is, works of ultra-modern artists, are becoming increasingly popular in the art market. Their prices are rising faster than the prices of famous classics.
In 2017, at an auction, the work of American artist Dana Schutz was sold for a record $6.5 million for red chips, which exceeded the valuation of Andy Warhol's work at the same auction at $6.1 million.
Now young and promising talents are valued on an equal footing with already well-known artists, which has become a sign for collectors. Among such "dark horses" of the art market are Amoako Boafo, Matthew Wong and other artists known in narrow circles, as well as contemporary Asian artists.
The Asian market is considered one of the most promising areas in the development of the art market, so investors should pay attention to this.
In 2022, Knigh Frank specialists noticed an interesting trend: young entrepreneurs began to invest in art objects thanks to the development of NFT technologies. The average age of such investors was only 42 years, and 75% of them are new to collecting.
The boundaries between art, technology, and finance are gradually blurring, as evidenced by Sotheby's holding the first NFT auction in history, where works were sold for a total of $17 million. Interest in crypto art continues to grow.
Many investors see the art market as one way to diversify their investments and expand their portfolio. However, to enter this market, you need to have certain knowledge: an understanding of art, the ability to choose works that may become valuable in the future, and patience, since most art objects are long-term investments.
Therefore, the acquisition of paintings and sculptures should bring emotional satisfaction.
Another important aspect is the fragility of art objects, which require special storage conditions and investment in their preservation and insurance.
For novice investors, it is important to think carefully about their decision before investing all their savings in art objects. However, investing in a painting or sculpture that brings emotional benefits can be the beginning of collecting and bring joy to its owners.
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