Contemporary art worth investing in
The fine art market is at its strongest in years as collecting investment art has become a popular way for investors to diversify their assets. Just this spring, Sotheby’s auctions raised a combined $283.4 million and smashed records for eleven artists. The total for various spring sales at all three major auction houses – Sotheby’s, Christie’s and Phillips – was more than $2.5 billion. Furthermore, the latest annual Art Basel and UBS Global Art Market Report noted international art sales had “recovered strongly” from the coronavirus pandemic, with sales reaching an estimated $65.1 billion in 2021, up 29 percent from the previous year.
Despite these impressive figures, knowing which new artists to invest in can sometimes be difficult. When you invest in a piece of art, you’re buying it with the expectation that demand for that piece or similar pieces will increase faster than the supply. But that depends on market demand, and therefore, you want to invest in a piece of art that is both aesthetically pleasing to you and a sound investment.
You may not be able to afford a work by Van Gogh or Monet, even if one is available, but there are still many pieces you can purchase. From Jean-Michel Basquiat to Leonora Carrington to Richard Prince, the consultants at Heather James Fine Art can advise you on which art you should buy now.
Buy what you like
Investing in contemporary art is the current trend in the primary market, but the volume of artists both good and bad can be overwhelming, making finding new artists to invest in challenging. The qualities of what makes art a sound investment can be hard to identify and you’re unlikely to discover the next big artist on your own. Furthermore, the price of an artist’s work often depends on what she or he subsequently does and the style.
How might you find artists whose work will grow in popularity and value over time? Auction houses and art fairs are the more traditional routes an investor can take, while art magazines and social media channels such as Instagram might help you discover relatively unknown artists. Or you can rely on word of mouth from other people who may or may not be experts.
Galleries, however, promote artists, increasing their visibility and often placing their work in museums. Their investment in an artist is a sign that their work is an important contribution to the arts, and therefore, also has significant value. But ultimately, you want to acquire art that is both a sound investment and aesthetically enjoyable. If you fall in love with the paintings of a certain artist that has a very niche appeal, then purchasing those works are worth the money you will spend.
Protect your collection
Viewing art as an investment is the best way to think about creating a valuable collection. By being selective, diversifying your purchases, and holding onto pieces long term, you can protect your collection even as you build it. But to be a savvy collector in the current art market, it is not enough to simply browse contemporary artists in catalogs or gallery spaces. If you are ready to invest in art, the consultants at Heather James Fine Art can find the perfect work of art for you. Call us today.
