Is there any defined trend sweeping the
The growing number of museums, art fairs, galleries, art funds and 'advisors' indicates a growing regional interest in art. Established institutions such as The Fine Art Fund London took up its headquarters in
All art is swayed by global trends in prices and economic forces. However through our own investigations into the
Are there enough consultancy services available to help an individual determine if a piece of art is a good investment?
Commonly-recognised art market indices are a good indication of the value of an investment. An investor should take heed of the artist's background, the quality and condition of the work, how in demand they are, who owned the piece previously, etc. In emerging markets where there is growing investment interest and lots of young artists who are relatively unknown, potential investors would benefit from more independent consulting services, independent curators and retail platforms such as galleries, auction houses and curated exhibits or fairs.
How can something as subjective as art be valued?
A global art market cultivates value based on common indices such as artists' training, subject matter, gallery representation and links to historical and cultural heritage. Other factors, such as the condition of the piece and provenance, play a large role in market value. But ultimately the price of each work comes down to what an investor is willing to pay for it.
Is art as safe an investment as gold?
Both are subject to market demand. The obvious difference is that gold is a regulated commodity that is easily graphed and trades on an official global market index. By contrast, no two works of art are the same (even from the same artist) and each piece has a perceived value based on what an investor or institution is willing to pay for it. Securing the market today are auction houses and art dealers who work as guarantors; buying art for themselves or through unidentified third parties before re-selling, thus driving up demand. A recent article by
How has the perception of art changed since the financial crisis?
Unlike all other asset classes, art continued to rise in value during the crisis. According to the FT's
How has regional conflict impacted art and its valuation?
Conflict can damage an artist's means of producing work if geographical constraints exist, or increase their power to produce work to good effect; both factors including rarity and impact of the work (as we are witnessing) serve to increase market value.
What are the challenges facing the art investment market?
Encouraging more potential investors to invest in a wider audience of contemporary art and design, and to do so with confidence. Potential clients often feel they don't know enough to take the first step - therefore the market needs to cultivate and build relationships for them.
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