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