Art investment

Jacob Samuel

The global art market is considered to be interesting, fascinating, challenging and potentially yielding nice financial gains for investors who invest correctly in this market.
The art market, along with being a traditional market that keeps the value of artists and their works, it’s a dynamic and changing market that produces new artists and new lines in art and in particular when it comes to painting. Therefore, the investor must use experts who experience the art market trends, and the innovation and market development of painting around the world. An investor which is not an expert in the art market and doesn’t experience the fluctuations in this market perhaps should not buy art as an investment, but for hobby and spiritual satisfaction only.
The field of art has always been considered a staple in the culture of each nation and nation. The reasons are many and varied, but major. Accordingly, we see that the nations’ leaders and rich residents would retain art assets transferred from generation to generation at their homes. Art works was always considered desirable and as something that everything needs to be done in order to achieve it.
In the last decade the art field has evolved to become a global market and trade; Large companies have begun to stockpile works of art, people who can afford it acquired some of the best art creations and selected ones, and all that in order to invest their money in a product that yields safe and promising return. Investment in unique art was always a safe investment option for people with means as well as for companies that sought to invest their money, both for reasons of economic viability and long-term investment and/or for reasons of tax savings (a tax deductible investment).
In addition, over the years, art was seen as a safe investment with an annual double-digit yield growth due to the unique market conditions, due to the high requirements to enter this market (market entry barriers), low supply of art works, a high demand for art due to the entry of additional investors (increase in the number of rich people in the world) and the fact that investing in art is considered a safe investment.
Over the past decade we can see that the volume of investments in art grows with the years. In this matter we can cite ART PRICE founder and CEO, Thierry Ehrmann, “The cumulative data indicates a 30% increase over the last decade.”
As the possibility to purchase art mainly focuses on auction houses, galleries and fairs, we can see that in the last decade the volume of these activities widened in accordance with the increasing demand for investments in art, as can be seen below. Moreover, in recent years we have identify a trend of new buyers who purchase works of art in the range of low to medium prices, as suggested by Mr. Yossi Filkann, the President of Christies “The greatest growth of the art market comes from an increase in quantity of new buyers in the range of low and medium prices” . Naturally low price and medium price are a matter of perspective.
Sales figures of art products at international auctions for the past few years, and over the past decade in particular, indicate an upward trend in the volume of products sold in art auctions worldwide. You can see that between 2012 – 2013 and between 2010 – 2014 there
Paintings have always been an important part of the art and have always been the main pillar in the area of art investment. Even today we can see that the substantive sales and trading focuses on the art of painting, particularly when it comes to oil paintings.