Should I Invest in Art in Times of Inflation and War?

Art is timeless but does it make sense to invest in times of crisis?
Paula Rego, Júlio Pomar, Almada Negreiros It is Manuel Cargaleiro are well known names of 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 supporters. It is often said that in every crisis there is an opportunity. Undoubtedly, this is the time to invest! Art is timeless but does it make sense to invest? In general, 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 guarantee that a piece will appreciate in value. The ideal is to 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 itself won't bring profit every quarter like a business, but it doesn't bring as much financial and tax hardship either. Unlike stocks, which are sensitive to market movements, stocksrte have grown 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 some research to obtain information about the artist and the condition of the piece. Large collectors have consultants who help them evaluate, but for a common investor, the best thing is to turn to the internet. Rely on the technology you have available!
To get a good price for works, try to avoid following 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. Do not forget that it is 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 renowned artists of inferior quality and, in these cases, the profitability to be achieved will certainly be lower.

Should I invest only in established artists?
A crisis can make fortunes lose (and gain), 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 an increasingly accessible and exciting market. Thanks to the internet, it's easier than ever to discover investment-worthy artists beyond 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 artworks are constantly selling for high prices on the secondary market and are held in the collections of established institutions.
In addition to these works with exorbitant prices that dominate the news, there are works by established artists such as Júlio Pomar, Manuel Cargaleiro, Vieira da Silva It is 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 because they can easily be valued monetarily. Should I invest only in established artists? It is important to emphasize that, if you are going to buy, you want to buy works of art that make you happy, whether by a renowned 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'll be missing out on the fun part of investing in art, compared to equities.

Invest in emerging artists?
In addition to these artists, the border of emerging artists, or more young people and yet to be recognized in the early and middle stages of their careers. Although these artists still lack name recognition, they are at the forefront of contemporary art and their works are available to collectors of all stripes.
You emerging artists Today's artists are tomorrow's established artists, and purchasing a work of art early in an artist's career offers a greater chance of seeing your purchase value increase 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 are important to you means supporting local arts education and 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's never been a better time or 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.