Art as an investment – What should an art investor look out for? How high is the return actually? Is an investment in art worthwhile? How do prices for works of art arise? Why do these prices rise so much? What influences the return on an art investment? It is not only money that attracts art lovers. Also new social contacts and insight into the world of artists, collectors and art lovers. Today we also take a look into the world of art investment together.

Back to the Capital Investment editorial.

Risk assessment art: advantages and disadvantages

Access to the established art market is possible for newcomers via galleries or auctions. For buyers with capital, art is definitely attractive as an investment.

What is risky is that art has no fixed values and thus no clear prospects of profit. Buyers must also have appropriate storage facilities. The risk is accordingly high. Today’s return on art is high, if demanded, matching the high risk of art as an investment.

Art likes to be traded. Getting started in the art trade takes time, so art is not a short-term investment. You can get access to the established art market through galleries and art auctions, for example, in which you can participate with prior registration. Whoever bids, also bets a little. Accordingly, there are no clear profit prospects in art trading, especially at auctions. Security also plays a role, as buyers must have appropriately secure storage facilities when storing art objects.

Advantages

• Durability and safety of the installation
• High returns with optimal demand
• Representative power of art
• Long-term capital investment and possibility of inheritance

Disadvantages

• Long introductory phase
• No fixed sales value
• Know How of the buyer must be available
• Storage facility must be available
• Low transparency of the art market
• No short-term investment

Painting and masterpieces

Known art objects: Painting

What makes masterpieces so interesting?

1. Less insider knowledge required
2. Price development transparent
3. Simple purchase and sale

Special art objects: Painting

Special art objects: Fabergé Egg

Fabergé eggs are jewellery items in the form of Easter eggs, they are ornately decorated and the epitome of the highest goldsmith’s art and a true symbol of luxury. Compared to well-known paintings by painters, the market is smaller, the individual artists and manufactories generally more unknown.

You’ll find our 3 tips for getting started in a moment!

The most expensive works of art in the world

1. Leonardo da Vinci – Salvator Mundi for 450.3 million US-$
2. Pablo Picasso – Les femmes d’Alger for 179.4 million US-$
3. Modigliani – Nu couché for 170.4 million US-$

You can find more statistics at Statista

Procedure: Tips for the object search

1. Choose a type of art that is interesting to you such as painting, photography, graphics, design
2. Search for special unique pieces and / or objects, which were produced only in small editions
3. Last comes the choice of the right strategy, do you speculate on known artist, unknown artist