2024-04-25
In times of crisis and inflation, we actively seek opportunities to secure our capital. We can reach for standard banking methods or consider buying property, but it is also worth looking at alternative and less popular methods of investing money, such as artworks. According to the 'Art Collector Insights 2023' report published by Artsy, the sale of art is becoming increasingly popular. Collectors are continually adding to their collections, often opting for the online route of acquiring a new object for their collection. Abstraction, a key genre of contemporary and recent art, remains the most popular trend. Owning a work created over the last 100 years can be a unique form of capital preservation and a gradually growing investment that adorns its owner's space in the meantime.
Buying a work of art is not only a potential financial gain, but also a form of intellectual and cultural investment that is a source of satisfaction and pleasure. By choosing contemporary art, a collector can support an artist who is alive and still actively creating, thereby helping to further his or her artistic career. We currently have access to a huge range of works by a great many artists, and buying artwork online has never been so easy. This gives us a very wide spectrum of choice in terms of aesthetics, representation, and price. Contemporary art is one of the most affordable in terms of purchase, as the expected amounts are very diverse, thus accessible even to those with a narrow investment portfolio. It is worth remembering that the art market is volatile and artistic potential is of great importance. After looking at an artist's biographical note, achievements, exhibitions and previous auction listings, we can judge whether that artist's artworks will gradually increase in value. Investing in art is also about raising one's social status and showing prestige. Building up a collection of contemporary art continually supports collectors in their personal development and in learning more and more about the market and art history, as well as contemporary trends.
How do we find out which work of contemporary art will be a good investment? What can help us to make the right choice that will then bear financial fruit? Before buying, it is worth taking the time to do a decent analysis of a few factors yourself. Firstly, the already mentioned getting to know the author of the work of interest better. Factors such as artistic education, group and solo exhibitions, awards and scholarships, as well as the artist's auction quotations all affect the price of a work and its future investment potential. Consideration should also be given to whether a particular artist's works are favoured by other collectors and fit in with current contemporary art trends. Secondly, a thorough review of the work itself. The price of an object is also defined by its state of preservation and the circumstances of its creation. Before buying, we should check whether the work has any damage that could potentially reduce its value. In the case of online purchases, auction houses will inform you of any defects in the work and the possibility of preserving and repairing the work. Thirdly, it is worth finding out the history of the work of interest. What were the circumstances of its production? Is it important in the history of art? Was its creation connected with other significant events? The Internet can answer these questions for us, but even its sources do not always give a satisfactory explanation. To best assess the value of a work, an expert should be consulted. Art experts, i.e. art dealers, gallerists, art historians, help to better understand the art market and can assess the investment potential of a work. In addition, when buying a collector's object from an auction house or art gallery, you will receive a corresponding certificate of authenticity, which will be a key confirmation of the work's value.
Once you have thoroughly researched the above factors and purchased your chosen artwork, you can think of ways to increase the value of your investment yourself. Let's start with the fairly obvious issues, namely maintaining the artwork in good condition. One of the biggest advantages of investing money in art is that you can use your investment as a decorative element in your space on a daily basis. However, it is not always the case that the work purchased fits into our interior or that we simply do not want to display our collection in private spaces. Whether the painting hangs above our sofa or is tucked away in the basement, we need to ensure that the work is optimally stored, maintained and cared for. The condition of a work of art is negatively affected by extreme temperatures, humidity, overexposure to the sun, and much more. Good conservation of the work, regular observation of its condition and the right environmental conditions will ensure that the object remains in perfect condition and does not lose its value. However, we are not aiming for our investment to remain static — we want its significance to increase. So what should we do to make our artwork more recognizable, known, appreciated and, as a result, more expensive? First and foremost, it's worth looking into promoting it and exploring opportunities to exhibit the work in exhibitions. Collectors regularly lend parts of their collections to art events, while also advertising their collection and thus opening themselves up to dialogue with the contemporary art community. Having a reputation as a collector definitely helps in the sale of artworks and also increases the prestige of the collection itself. Being involved in the art market, observing its changes and the development of the careers of the artists represented in your collection can have a real impact on the value of the works you purchase. Knowledge of current artistic trends enables you to exit your investment at the right moment.
An investment in art is a long-term investment. We cannot expect a return or profit after just a few months. The purchased artwork will accompany us for at least a few years before we hit the right moment to sell. When we enter into an investment, we do not know when exactly we will have to part with our painting or sculpture. To find that right time to sell, we need to revisit the same tools that helped us in the original selection of the artwork. Again, it is important to familiarize ourselves with the current characteristics of the art market and to research the development of the author's artistic career, paying particular attention to recent auction listings. It is advisable to consult your decision to exit with an expert who can advise you on the most advantageous method of resale. Before choosing a form of transaction, ask yourself what your ultimate investment objective is: do you want to get the maximum price or are you keen to sell quickly? The answer will help you decide between putting your work up for auction or selling it through a private gallery or online platform. Art galleries and auction houses may charge a percentage commission of varying amounts, which is worth taking into account when negotiating the price of an object. The final confirmation of the value and authenticity of your artwork is the certificate. Remember to have the appropriate documentation in place before proceeding with the transaction.
In the offer of Artbidy's Contemporary Art Department, you will find many interesting artists whose works definitely have investment potential. We invite you to have a look at the proposals of artworks by Edward Dwurnik, Jerzy Nowosielski, Roman Opałka, Leon Tarasewicz and many other artists whose works are constantly increasing in value. If you have any questions, please do not hesitate to contact us. Our experts will be happy to help you select the right artwork for your investment needs.