The Gentleman Magazine Issue 4 | August/September | Page 48

Investing in Contemporary Art In a time when uncertainty and fear on so many levels With a well established artist, you should look at the presence of a secondary market ie. can the work be re-sold? Your art dealer will be able to give you examples of comparative work at auction houses such as Phillips, Sothebys, Bonhams and Christies. Try to obtain a professional opinion that with well- established artists, despite being internationally acclaimed, their prices still have scope for high returns in years to come. Normally the impetus for purchasing artwork is a combination of financial return coupled with a passion and desire for the artwork, visually as well as part of a growing status symbol. Art is increasingly becoming part of a social lifestyle membership which is exaggerated by the increasing importance of social media in people’s daily lives.   With emerging artists, we look for unique style, consistency and attributes that make an artist's work instantly recognisable. Is the image consistent with the artist’s style? have become our daily routine, investing in contemporary artwork may be the answer for you. Investing in artwork is of course not purely financially motivated, but many investors who are attracted to traditional methods of investment are diversifying due to the higher potential returns from investing in contemporary art. Deloitte Art & Finance report in 2016 showed that 72% of collectors were primarily motivated by emotional returns, 61% by social returns (being part of a social scene, network of likeminded people), and 64% by financial considerations (investment returns). The average return has been 10.85% per year 1965 – 2016 (Mei Moses Art Index). There are many aspects to consider when investing in contemporary art. One of them is deciding whether or not you want to invest in emerging or well-established artists and I would suggest mixing your investment portfolio with both, depending on what risk you want to take. You should find a knowledgeable art dealer (Box Galleries!) who can source artwork in both fields and can give yo