During times of economic uncertainty savvy investors are always on the look out for alternatives to the traditional stocks and shares options. Recent research by Fidante Partners indicates that the alternative global investment market is projected to grow by $2.5 billion over the next three years alone.
Aesthetic And Financial Benefits
One of the greatest strengths of the art market as an alternative investment is that art gives its owner far more than just financial benefit. While you are waiting for your investment to grow in value you can enjoy having your artwork displayed in your home or office. This is why almost all art investment experts will advise you to purchase artworks you find aesthetically pleasing and which have significant potential to appreciate in value.
Past Performance & Future Projections
In addition to this aesthetic pleasure, these days art is a serious business with strong growth potential. According to economist Clare McAndrew’s report in UBS and Art Basel’s “The Art Market | 2018”, in 2017 total global art sales rose to $63.7 billion which marked a 12% rise on the previous year.
Despite a backdrop of wider economic uncertainty and stock market wobbles, the art market has delivered solid performance since bouncing back from the recession in 2010. Thanks to strong demand for work by contemporary art superstars and a favourable economic context global auction turnover for contemporary art reached $1.9 billion across June 2017 to June 2018, representing an increase of 19% on the previous 12 months according to Artprice.
Emerging & Established Artists
While key pieces by blue-chip artists like Andy Warhol or Pablo Picasso might grab the media headlines, most investors will seek the advice of seasoned art market experts to identify emerging and established artists whose work has strong potential to increase in value.
Rather than spending millions on a artwork by a household name, this investment strategy favours more moderately-priced pieces which are likely to appreciate over the course of several years or even decades. This is another reason why art can make such a good long-term investment strategy as artworks tend to hold their value very well even during recessions.
How To Invest
To the outsider the art world can seem like a daunting place which is why it is highly recommended to engage an expert to help you navigate and make all the right contacts. A reputable gallery which offers fully-managed investment services is a great option as they can usually source high potential artwork on your behalf and guide you through the confusing process of selling at auction or buying direct from artists themselves in the case of emerging artists. Your account manager should also be able to help you discover your taste in art and guide you to developing your growing portfolio for both your aesthetic and financial benefit.