Art market has shown a remarkable 25% annual growth. What to look for in order not to miss an appealing investment opportunity.
Battle for Masters
During the last decade, art market has become an arena for billionaire’s battles. The last record sales hit Christie’s auction in 2015, when «Les femmes d’Alger» by Picasso was sold for $179.4 million, Kandinsky’s «Painting with white lines» sold for $41.9 million. Nevertheless, the highest grossed auction revenue came from Leonardo da Vinci’s «Salvatore Mundi» sold last year for $450 million. The biggest art market share falls to art works that cost between 1 and 5 million dollars, with growth perspective.
What art consulting does?
Art prices have gone up more than 1000% in the last 40 years. Only last year art market has demonstrated a remarkable 25% market increase. No wonder, big and small investors lean towards creating their own collections. But art market is not only a rich man’s playground, every investor who has at least some interest in the art market is capable of making profitable investment. Before you start investing in art, just like before any investment activity – it is better to create short-term and long-term investment plan and do not make any hasty emotional decisions.
However, if you are ready to take your art investment to a higher level you need to start working with a professional art consultant. Art consultants help verify artwork’s authenticity and value. Art consultants also act as brokers, connecting private sellers with buyers.
Explore galleries and exhibitions. Buy drawings and don’t be afraid to take risk.
Another advise to successful art investment, just like with any investment, start with research. Explore gallery exhibitions, because they are one-step ahead of the market. Pay attention to contemporary artists who have museum retrospectives, art institutional support and who receive award recognitions. Buying drawings instead of canvas paintings proves to be more cost-effective. Drawings by famous artists are just as valuable, but they cost less than canvas paintings. In addition, drawings are easier to store and transport and as soon as they increase in value you can sell or trade them for different ones.
Finally, don’t be afraid to take risk investing in underrated artists. With the help of art consultant, your personal taste and intuition, you will find artworks that may not seem in high demand now, but that will prove value in the long run. Joan Mitchell is an example of such an artist. Joan has stayed in the shadow of male artists for a long time, but her painting was sold last year for the record-breaking $16 million Christie’s.