Art is timeless but does it make sense to invest in times of crisis?
Paula Rego, Júlio Pomar, Almada Negreiros and Manuel Cargaleiro are names well known to the Portuguese public, hence they are seen as a safe haven and a good bet. What if instead of buying stocks, you bought pieces of art? This is not an unreasonable idea and has been gaining more fans. It is often said that in every crisis there is an opportunity. Without a doubt, this is the time to invest! Art is timeless but does it make sense to invest? Generally speaking, art is an asset with good appreciation, but it should always be thought of as a long-term investment. Don't forget that the more time passes, the greater the guarantees that a piece will appreciate in value. Ideally, wait at least 15 years before selling. Of course, any investment is made because of its potential value over a period of time or the returns it will bring. Now, a work of art in itself won't bring in profit every quarter like a company, but it also doesn't bring as much financial and fiscal adversity. Unlike stocks, which are sensitive to market movements, the pieces of art have been growing steadily and tend to maintain or increase their value over time.
I want to buy a work of art! What should I do now?
Get as much information as possible. Before buying, do a research to obtain information about the artist and the state of conservation of the piece. Big collectors have consultants who help them evaluate, but for the average investor, it's best to turn to the internet. Lean on the technology you have available!
To get a good price for your works, try to avoid following the trends. It is natural that certain types of works are the target of greater demand in certain periods of time, which ends up influencing the price to be paid. Don't forget, it's not worth buying a work of art just for the artist's signature, as this is not always synonymous with appreciation. There are works by established artists of inferior quality and, in these cases, the profitability to be achieved will certainly be lower.
Should I invest only in established artists?
The crisis can make you lose (and gain) fortunes, but a painting by a great painter always manages to resist the erosion caused by the passage of time. Even in periods of exaggerated inflation due to the meteoric rise in raw material prices. Currently exorbitantly priced masterpieces dominate the art market news, yet these sales represent only a fraction of a market that is increasingly accessible and exciting. Thanks to the internet, it's easier than ever to discover investment-worthy artists other than the grandmasters present at auction houses like Warhol, Koons or Basquiat. These artists are known as blue-chip or established artists, which means that their artwork is consistently sold for high prices on the secondary market and is held in the collections of established institutions.
In addition to these exorbitant works that dominate the news, there are pieces by established artists such as Júlio Pomar, Manuel Cargaleiro, Vieira da Silva and Vhils with more favorable values for investors and art lovers. In addition to the good price for the work, they are also a good investment as they can easily be monetized. Should I invest only in established artists? It is important to emphasize that, if you are going to buy, you are willing to buy works byrt that make you happy, whether from an established artist or a young artist. If you invest €10,000 in a painting you don't like, just because you expect its value to increase, you will be missing out on the fun part of investing in a painting.rt, compared to shares.
Invest in emerging artists?
In addition to these artists, the frontier of emerging artists, or more young people and yet to be recognized in the early and middle stages of their careers. While these artists do not yet have name recognition, they are at the forefront of contemporary art and their works are available to collectors of all types.
You emerging artists of today are the established artists of tomorrow, and buying a work of art early in an artist's career offers a greater chance of seeing an increase in the value of your purchase over time. But when you buy emerging art, you're not just leveraging a financial investment – you're supporting an artist's career. Investing in emerging artists with ideas that matter to you means supporting education and the local arts community! But you can also simply fall in love with an artist's work, which is the most important factor.
Embarking on the art world is not as out of reach as you might think. There has never been a better time or an easier way to discover art and start building your collection. Thanks to P55.ART, you can discover artists from all over the world. Follow our advice and discover how you can become an art collector and investor today.