When it comes to investing, many people immediately think of stocks, real estate, or even cryptocurrency. .....
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When it comes to investing, many people immediately think of stocks, real estate, or even cryptocurrency. While these traditional forms of investment can certainly be lucrative, there is another option that often gets overlooked: art.
According to a study conducted by Artnet and UBS, the global art market saw a total value of $64.1 billion in 2018, with the top 500 artists accounting for 87% of the total market value. And in 2019, the global art market saw a growth of 8% with a total value of $67.4 billion.
As an investment, art has the power to not only appreciate in value over time, but it can also bring joy and beauty to those who own it. It’s a tangible asset that can be passed down through generations, making it a unique and enduring investment.
But what makes art such a powerful investment? Here are a few reasons:
Rarity and exclusivity -
One factor that can drive up the value of art is its rarity and exclusivity. A work of art that is one-of-a-kind or produced by a renowned artist will generally fetch a higher price. n fact, according to the Artprice Global Art Market Report, the top 10% of artists by auction turnover accounted for 76% of the total value of the global art market in 2018.
Increased demand -
Like any other asset, the value of art can fluctuate based on demand. If an artist or movement becomes particularly popular, the value of their work may rise as more collectors seek to add it to their collection. This is especially true for emerging artists who are just starting to gain recognition. In fact, a study by ArtTactic found that contemporary art saw the highest return on investment, with a 10-year compound annual growth rate of 8.9%.
Appreciation over time -
Unlike many other forms of investment, art has the ability to appreciate significantly over time. A work of art purchased for a few thousand dollars could potentially be worth millions years later. This is especially true for iconic pieces or those produced by well-respected artists. In fact, a study by Artmarket Research found that the average annual return for art investments was 11.3% over the past decade.
Personal enjoyment -
While the financial return is certainly a factor to consider, many art collectors also invest in art for personal enjoyment. Owning a beautiful piece of art can bring joy and a sense of pride to those who own it, making it a rewarding investment beyond just its monetary value. In fact, a survey conducted by the European Fine Art Foundation found that 69% of art collectors purchased art for personal enjoyment, while only 31% cited financial gain as their primary motivation.
Whether you’re a seasoned collector or just starting out, art can be a rewarding and enriching addition to your investment portfolio.
**Like any other investment, please seek professional independant investment advice. This article is a point of view, not a recommendation.
#artinvestment #artmarket #artcollectors #artappreciation #investinginart
According to a study conducted by Artnet and UBS, the global art market saw a total value of $64.1 billion in 2018, with the top 500 artists accounting for 87% of the total market value. And in 2019, the global art market saw a growth of 8% with a total value of $67.4 billion.
As an investment, art has the power to not only appreciate in value over time, but it can also bring joy and beauty to those who own it. It’s a tangible asset that can be passed down through generations, making it a unique and enduring investment.
But what makes art such a powerful investment? Here are a few reasons:
Rarity and exclusivity -
One factor that can drive up the value of art is its rarity and exclusivity. A work of art that is one-of-a-kind or produced by a renowned artist will generally fetch a higher price. n fact, according to the Artprice Global Art Market Report, the top 10% of artists by auction turnover accounted for 76% of the total value of the global art market in 2018.
Increased demand -
Like any other asset, the value of art can fluctuate based on demand. If an artist or movement becomes particularly popular, the value of their work may rise as more collectors seek to add it to their collection. This is especially true for emerging artists who are just starting to gain recognition. In fact, a study by ArtTactic found that contemporary art saw the highest return on investment, with a 10-year compound annual growth rate of 8.9%.
Appreciation over time -
Unlike many other forms of investment, art has the ability to appreciate significantly over time. A work of art purchased for a few thousand dollars could potentially be worth millions years later. This is especially true for iconic pieces or those produced by well-respected artists. In fact, a study by Artmarket Research found that the average annual return for art investments was 11.3% over the past decade.
Personal enjoyment -
While the financial return is certainly a factor to consider, many art collectors also invest in art for personal enjoyment. Owning a beautiful piece of art can bring joy and a sense of pride to those who own it, making it a rewarding investment beyond just its monetary value. In fact, a survey conducted by the European Fine Art Foundation found that 69% of art collectors purchased art for personal enjoyment, while only 31% cited financial gain as their primary motivation.
Whether you’re a seasoned collector or just starting out, art can be a rewarding and enriching addition to your investment portfolio.
**Like any other investment, please seek professional independant investment advice. This article is a point of view, not a recommendation.
#artinvestment #artmarket #artcollectors #artappreciation #investinginart