Contemporary art sales are signalling a new period of prosperity. With figures escalating, the market is generally accepted to have one of the most rewarding benefits from an investment standpoint.
So the question has become, is contemporary art something you should be investing in? Art, unlike stocks and bonds, provides an alternative, tangible asset. It differs greatly from numbers on a computer screen, as there is the added benefit of building a collection and owning something that you can appreciate on a daily basis. Contemporary art is one of the most exciting markets, allowing it to sit head and shoulders above most investment opportunities. As a plus, you retain an affordable asset with opportunities for large returns. Buy low sell high has never been so applicable, with plenty of emerging artists the contemporary art market is rife with opportunity.
The rise of the art market can be understood through its impact on four major cities, New York, London, Beijing and Hong Kong. Generally speaking, the art market’s concentration in the world’s major financial capitals is intensifying with contemporary art. Beijing is the only city out of these four not currently experiencing a contemporary art hyper-concentration, which is thought to be due to Beijing’s unique position as a marketplace for traditional Chinese art. This alone is a steady sign that contemporary art is now the primary locomotive of the current art market.
In proportional terms, modern art is the market’s largest segment but contemporary is emerging quickly and we can feel confident that it is here to stay. In 2000, Contemporary art accounted for 3% of global fine art auction turnover, last year in 2017 that figure rocketed to 15% with an estimated increase for the foreseeable future. Many high networth individuals are taking the step into diversifying their portfolios with emerging and established artists. The audience for contemporary art is growing rapidly so really the tangible, quality piece one collects could easily outperform everything else in their portfolio.
As Fabian Bocart, founder of Tutela Capital stated in his talk on “Secrets of the art market”, “Invest confidently in art, because an artwork will never be bankrupt.”
Distassi Art Team