Investing in contemporary art-sales dynamics
Modern paintings can be a great investment. You only need to buy them in the right place, with qualified advice, and do not rush to ” skim the cream»
Painting as a legacy or a successful purchase
If you inherited an authentic Andy Warhol painting or purchased it yourself some 45-50 years ago, then you, your children, and grandchildren are well – off people. A less famous author can also make good money. After all, modern painting is not only an opportunity to surround yourself with something beautiful, but also a way to earn a lot.
Russians traditionally perceive investing in art objects as a kind of exotic. And if they decide to invest in this way, they prefer Antiques. These stereotypes are the result of inertia, they have no practical basis.
First, art is an “eternal theme”. The demand for it has existed since the stone age and will only grow as human society develops. Oil paintings cannot depreciate as any currency or stock. The desire to buy them does not depend on market conditions, and the cost is supported by a real need for positive emotions. Therefore, a painting on canvas is even more reliable investment than gold. After all, every work of art is unique and unique.
Secondly, modern art can be no less profitable than the works of old masters, and its availability is definitely higher. The advantages of investing in the works of current artists are obvious:
– modern art is available not only to wealthy people, but also to representatives of the middle class,
– the probability of encountering a fake is significantly lower, there is no need to spend money on expensive expertise,
– there is a chance to get a “Golden lottery ticket” – to buy a picture of the artist, which in the future will rise in price by thousands of percent (paintings by Kandinsky, Falk or Chagall at the beginning of their creative path could be purchased inexpensively).
In addition, the “time factor” in the case of Antiques is almost completely exhausted. What’s the difference between 250 years of painting or 350? This has almost no effect on the price. And modern painting will carry the imprint of our era into the future and will almost certainly become more expensive. An example of this is the ordinary icons of the 19th century. Once they were written by unknown icon painters and were available even to ordinary peasants, but now they are of considerable value.
How to buy a painting correctly
The problem with investing in modern art is that it is much easier to “get lost” in it than among the paintings of masters of the past. In the case of Antiques, expert assessments have long been formulated and recognized by the world community. Fashion can have an impact, but these trends are medium-term and do not play any role over long periods of time.
Today’s artists are not so “transparent”, the price of their creations is not determined by obvious criteria. Here we must understand that the answer to the question of how much a picture costs is largely determined by the author’s biography. Experts say that a successful debut at the exhibition of contemporary art can lead to the fact that the work will be valued twice as much. If the painting became the property of a reputable Museum, it is an even more significant bid for success.
Nowadays, there are almost no “unrecognized geniuses”in painting. Authors and art salons are constantly looking for each other, so buying a picture on the street is hardly a good investment. Such a canvas has almost no chance to get into well-known catalogs and bring its owner a significant profit.
It makes sense for an investor to go to an art center. Another advantage of modern artists ‘ paintings as an investment item will be shown here – the buyer’s ability to get free, objective and honest advice. The fact is that the cost of a single canvas is relatively small. Specialists of the art center are more interested in a constant stream of satisfied customers, rather than selling one painting at an inflated price (and as a result-a ruined reputation).
How much can you earn on modern painting
Probably the most adequate study of the cost of modern painting was conducted by Professor R. Campbell of the University of Massachusetts in his fundamental work “Art as a financial investment”. In his work, he used information on transactions officially concluded with the works of one hundred modern authors (the paintings were written in the 20-21 centuries). This “slice” represents the market in miniature. Data for a 25-year period were considered.
First of all, it is worth noting that during all this time, there has never been a moment when investors would have suffered losses. Even 10% of the most unsuccessful investments eventually increased the capital of their owners by 1.5 times. 10% of the most profitable investments have increased in price by 10 times since the mid-80s. And the bulk of investments became more expensive by 6.5 times.
For comparison, a Bank Deposit during the same time increased the investment by less than half, and the price of gold increased only 3.5 times.
Periodic “drawdowns” were observed in the market, but they always recovered within a few years. As a result, investments in modern painting turned out to be the most profitable among passive investments.
Modern painting is the most profitable investment available to the middle class in Russia today. A prerequisite for such an investment is the purchase of a painting in an art gallery. The “reverse side of the coin” is that the investment horizon can not be less than 10-15 years, and the right time to sell the asset will not come immediately.
Special attention should be paid to the Soviet period. It is clearly undervalued, since at first it was poorly represented on the world market due to the” iron curtain”, and then the perception of the Soviet era was politicized for a decade.