Is it advantageous to invest in art? Where and how to invest in Contemporary Art?

É vantajoso investir em arte? Onde e como investir em Arte Contemporânea?

How does the Marketplace work?Art? Invest inArtis it advantageous?
Invest inArtgoes beyond finding the perfect painting to hang in your living room. THEArtit can occupy an important space in your financial state, serving as a hedge against inflation, adding diversification and reducing volatility. The beginning of the coronavirus pandemic presented a challenge for the market ofArt, although 2020 was a difficult year for the traditional art market, online sales reached a record US$ 12.4 billion, double that of 2019. With the growing art market and the proliferation of digital platforms, it is normal for there to be growth in this type of investment.

Paula Rego| P55 Magazine | P55.ARTPaula Rego

Financial market vs.Art
First, you have to bear in mind that there is not the same volatility in the art market as in the stock market. Thus, the value of theArtit doesn't go down according to negative news from the financial market as it constantly happens with stocks. This means that while traditional assets such as stocks or bonds perform difficult to predict, alternative investments such as art tend to maintain market value. So, theArtserves as a hedge against inflation.When buying works ofArtof different artists and movements, you are distributing your money and reducing the risk of your investment.

"Artworks are a physical asset, and physical assets tend to perform well in times of inflation (...) And given that we are now going through an inflationary phase in our macroeconomic cycle, art can be a hedge very good inflation." — Sachs

While there is risk in any investment, one of the benefits ofArtis that it is not an asset that is largely impacted by market volatility. Unlike stocks, which are sensitive to market movements, the A marketrthas grown steadily over the years, and traditional physical art tends to maintain or increase in value over time.

Taurus NY | P55 Magazine | P55.ART

Where and how to invest inArt?
Investors can buy art in different types of markets. Traditionally, it was bought at auction houses or going to art fairs. A booming area in the market is the digital art arena. This new space brings more liquidity to the market. Digital platforms likeP55.ARTallow anyone to buy several works of art, with a multiplicity of values.THEArtis a diverse market, so it is important to understand the artists and how theArtmust be preserved. It's helpful to familiarize yourself with an artist you like to see if there is sustainable growth. Noticing the performance of previously sold parts can be a useful indicator of the returns you can expect. Always consider whether there is demand from art collectors to buy pieces from the artist you are considering investing in.

“If major collectors regularly buy an artist’s pieces, that’s a strong sign that that artist’s pieces will continue to be appreciated in the long run.” — Emmons

Vhils| P55 Magazine | P55.ARTVhils

Remember if…

— Investing in art is an investment option with a long-term return.

    “Keep your patience and it will be worth it.

      — Do your research well.

        — Check the origin of the painting/work ofArt.

          “Connect with the artists if you can, if he's alive.

            — Check the available insurance options.

              It is important to emphasize that, if you are going to buy, you are willing to buy works ofArtthat make you happy. 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 inArt, compared to shares.

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