BLOG: The top five types of art to invest in for 2022 – Your Money – Your Money | Candle Made Easy

The past two years have been particularly tumultuous for the investing world as almost every market has been impacted by the impact of the pandemic. However, the art world has shown remarkable resilience.

The art market is not correlated to stocks or bonds and tends to remain stable regardless of how financial markets behave. This makes art a powerful alternative asset class and something that potential investors should seriously consider if they are looking to diversify their investments. Research by Deloitte confirms this: 85% of wealth managers recommend including art in a balanced investment portfolio.

While many people think exclusively of painting when they think of fine art, the reality is far more diverse and encompasses a whole range of mediums, including photography, sculpture, drawings and limited edition prints.

Despite this, many people still find the art world intimidating and are not sure where to begin when it comes to collecting and investing in fine art. If you’re interested in diversifying your portfolio by investing in art, here are five pointers to get you started.

Look at the market

A large part of investing in art is trying to anticipate upcoming trends in the market, so it makes sense to pay close attention to what’s gaining or falling in popularity and in whom or what collectors, galleries, and other artists themselves are showing interest. Maybe articles like that Rating by Motley Fool Stock Advisor can help you make a better investment decision.

Since the value of a work inevitably depends on the art market, it is important to do your homework before making a purchase. If you don’t properly research the piece you want to buy, you risk overspending and therefore not maximizing the potential return on the investment.

It is important to be immersed in the art world through publications, events and online communities as this makes it much easier to spot developing trends and assess where the market interest currently lies.

Visiting museums, galleries and art fairs will help you make connections within the art community and learn about the type of art you are considering investing in, as well as other resources such as reference books and magazines. The internet also offers many opportunities to learn and view art that you might not otherwise have access to, while also making it easier to connect with others in the art world.

Noting who other popular artists are showing interest in can also be particularly insightful, giving you a clue as to areas and movements that might be worth your investment.

cultural significance

Priorities in art have shifted steadily in recent years. While there will of course always be interest in the works of the Old Masters, there is also a growing interest in works that deal with issues of our time.

This is motivated in large part by younger collectors who see the value of modern art as a way to connect and engage with contemporary culture and to eliminate injustices based on race and gender.

This ongoing recalibration of society has significant implications for the art market. There is more interest in works that stimulate discussions about social impact, as well as those that increase the visibility of artists of color.

Originals vs Limited Editions

While original works are among the most highly valued pieces in terms of investment, those on a more modest budget should not discount investing in limited edition prints as these can also be a viable investment option.

While they may not reach the price of a great original work, limited edition prints are works of art in their own right and can be especially valuable when part of a larger collection.

Look at the quality

For those who are new to collecting and investing in art, especially on a budget, it is highly advisable to make the quality of the work one of your top priorities when selecting a potential investment property.

The condition of a work of art, even one of great names, will always be a major factor in determining value, and it will inevitably fetch a lower price if damaged than in new condition. It’s therefore a good idea to consider the materials used in the piece, as artworks that use quality materials are much more likely to retain their condition.

When choosing a piece of investment, you should always consider how well it will age. With this in mind, it is beneficial to consult an art specialist when in doubt, as they can best advise you before investing. It’s also worth considering the maintenance and shipping or handling costs of artwork as these affect the potential profit that can be made from a piece.

Like any valuable object, art needs to be properly cared for. As this is a long-term investment, it is crucial to preserve the value of the works you are investing in and avoid any hazards that could compromise the longevity of the piece and result in depreciation. Framing can often be as important as the art itself, as it not only protects the work but can actually increase its value.

art collectibles

Artworks have traditionally been priced differently depending on the materials and media they use, for example a pencil or charcoal drawing is likely to be available at a lower price than a bronze sculpture. This can be used to your advantage to purchase an original piece at an affordable price. Diversifying your interests across a range of mediums is a great way to start your collection or investment portfolio.

For example, a stainless steel sculpture titled “Rabbit” by artist Jeff Koons sold for $91.1 million in May 2019, while a performance artwork by Italian artist David Datuna consisting of a banana tube taped to a wall sold for $120,000 was sold in US dollars.

While these pieces may be out of the price range (or inclination) of some, collectible art offers many younger investors a way to break into the art investment scene. Many collectibles are an affordable way to get access to promising artists while also having good investment potential.

Steven Sulley is the founder and art consultant of Soho-based art studio Woodbury House

Leave a Comment