When it comes to buying art, there are many different reasons to invest. Whether it's simply because you fall in love with a certain piece of art, because of the way an artwork makes you feel, or for the more pragmatic reason that it can be a great financial investment.
Why is art a good investment?
Rising popularity of non-traditional asset classes
Art can be considered a luxury asset, or a passion asset, along with the likes of cars, wine and jewellery. These collectible items have real tangible value, and allow investors to “put their money where their heart is,” as Paul Sullivan explained(This link opens in a new tab). to the New York Times.
Art topped the ten leading luxury asset classes in Knight Frank Luxury Investment Index 2018. Reasons given for the popularity of luxury assets include asset diversification, capital appreciation and the simple joy of ownership.
Flexible entry points
Buying works by blue-chip artists like Picasso demand an enormous budget. However, it’s entirely possible to buy art as an investment within much more modest means.
Yield Gallery sells limited prints by exciting contemporary artists. These works are affordably priced and provide collectors the opportunity to acquire works by their favourite names in the market.
Just as the prices of artwork can vary hugely, so too can its potential to increase in value. Works by established arts such as Andy Warhol or Banksy are generally expected to steadily increase in value, or at least hold their value over a period of time. In contrast, works by emerging artists can increase in value far more dramatically if their star rises in the future, although this trend is not as reliable.
Collectors can therefore pick their level of risk and reward, opting for potential high growth with emerging works, or slower but more consistent growth with established names.
Resistant to market movements
Art is a good investment in terms of stability. Historically, the art investment market has remained relatively stable throughout huge changes in economic, social and political circumstances, which has seen conventional asset classes such as gas and oil spiral in cost.
Part of the reason for this is that art is not directly tied to major economic markets, and so retains its value while commodities fluctuate.
What makes art a passion purchase?
Aesthetics
We advise all our visitors to invest with their eyes, and choose artworks that speak to them on a personal level. In our mind, art is a good investment if it brings you joy, and this is a quality which naturally varies from person to person.
Part of the beauty of art as an investment is that it has a tangible and subjective value; beauty really is in the eyes of the beholder, and a collectors’ appreciation for a work is something that few other investment assets achieve.
It’s a great conversation starter
The artwork you choose to hang in your home is a personal choice and in many ways a form of self-expression. In the same way that you chose what to wear in the morning, the artwork you chose for your personal space says a lot about a person. Choosing an interesting, original piece of artwork is a great way to impress your guests and sure to spark questions on where you found the artwork, why you liked it enough to buy it and what you know about the artist.
For the story
All artwork comes with a story, an inspiration and a history. From politically-charged social commentary of street-artist Banksy to the documentation of the fragility and savage nature of the natural world by David Yarrow, every artwork portrays and emotion, a message or a moment.
To improve quality of life
Studies have shown that art can improve our well-being. According to Worldhealth.net stroke survivors who like art even enjoy a significantly higher quality of life and recover better from their stroke. Why is that so? Art touches us emotionally and often gives us an impulse to reflect our buried emotions and communicate with other people. Having an original art piece in our home or office will shape the whole atmosphere and can even inspire us in moments of boredom or listlessness. It can make a dull room shine with colours and give a motley space a calmer feel.
Discover great art and investment opportunities with Yield Gallery
There’s no one-size-fits-all approach to art investment. As a result, we encourage budding art collectors to explore the market, find works they love and learn about their favourite artists to inform their purchase. Our highly-trained art consultants are on hand for this very reason. Start the conversation and discover amazing and highly investable contemporary talents.
