Art has low correlation with other asset classes.
Art can be affordable.
Art protects against inflation.
Art is increasingly accessible.
Art increases overall returns.
Art is a tangible asset that has both historical and strategic value.
WHY INVEST IN ART?
Despite economic instability throughout 2021, record prices have continued to be set at auction. Clearly the art market didn’t just perform but consistently outperformed. With combined auction sales at Christie’s, Sotheby’s and Phillips nearly 230% up on the previous year the art market has been able to thrive during a financially unsteady period. This is obviously a very robust benchmark and is why so many investors continue to invest.
The most profitable sector of the art market is arguably Contemporary Art. Up 400% since the early 2000s this price index is more than double that of the post-war sector over the same period. From July 1, 2021 to June 30, 2022, turnover from global Contemporary Art sales totalled $2.7 billion. With the current amount of turnover and transaction density being the most this asset class has ever seen, this buoyancy is incredibly exciting from an investment perspective. Unlike many other investment classes the current supply and demand position has found ultimate equilibrium. This snowball is set to maintain growth with the art world continually attracting new buyers and the supply of art being offered at a wide range of price levels.
In recent years the art market has had its mettle tested from every angle and it continues to buoy. This is one industry that doesn’t have supply chain issues dependent on the rest of the global economy - making it very attractive as an asset class.