Investment in art in the long term

Recently, on June 28, an exhibition of art from the collection of Wojciech Fibak was opened in Toruń. The famous tennis player is probably one of the most recognizable investors collecting ancient and contemporary art. His business portfolio is impressive, but the most important place in it is taken by paintings. An exhibition of works from his vast collection is a good place to think about what it looks like investment in art in the long term? What resources do you need and what should you take care of to choose the right paintings or sculptures? Where can you buy valuable unique items and how to care for them so that time does not damage their quality?

Investment in art in the long term

In many museums you can find a painting with the annotation: “borrowed from a private collection”. These are often world-class paintings of enormous fame. Private collections are not only beautiful and unusual, they are also a good way to build an investment portfolio and diversify capital investments. Just like investing in wine or whisky, art is also one of the perfect ways to invest capital. However, you need to know what to invest in, how to choose paintings or sculptures for your collection so that they not only please the eye, but also your account balance. Stocks and bonds are only the most popular ways of investing.

Investing in art in the long term is, according to experts, one of the safest ways to invest capital. It is worth having a few valuable paintings in your portfolio, or purchasing the works of young, promising artists and watching them gain value. In the case of enthusiasts, it happens that they have an entire collection that exceeds the mark investment. However, it is always ultimately a passion with increasing value.

The Art of Investing in Art in the Long-Term Perspective

Investing into art can be a rewarding way to diversify your portfolio. It provides not only potential profits, but also aesthetic pleasure. Art, as an alternative form of investing capital, is less susceptible to the volatility of financial markets and offers stable, long-term returns. To invest in art effectively, it is important to have knowledge about the market, artists and trends, as well as benefit from expert advice.

Guide: How to invest in art

• Set your investment goals
  • Determine whether your goal is primarily financial gain or the pleasure of owning works of art.
  • Select the type of art you are interested in, e.g. contemporary art, classical art, graphics, sculpture.
• Research the art market
  • Follow trends, prices and results of auctions and exhibitions.
  • Analyze data about artists and their past market transactions.
• Consult an expert
  • Find a trusted art advisor who has experience in your area of ​​interest.
  • Get advice from gallerists, curators and collectors to better understand the market.
• Determine your budget
  • Determine how much you are willing to invest in art.
  • Consider additional costs such as storage, insurance and art maintenance.
• Buy wisely
  • Invest in works by blue-chip artists, which are more stable, or emerging artists who can deliver higher returns.
  • Consider purchasing limited editions and prints that may increase in value over time.
• Take care of your investments
  • Store works of art in appropriate conditions to prevent them from being damaged.
  • Regularly monitor the value of your collection and stay up to date with the market.
• Diversify your portfolio
  • Invest in different art forms and styles to minimize risk.
  • Don’t limit yourself to one artist or type of art.
• Be patient
  • Investing in art is very profitable in the long run.
  • Give yourself time to gain knowledge and experience in the art market.

Where to buy works of art?

Works of art are a very interesting way to diversify your investment portfolio. There are many ways to purchase interesting and valuable works. The most reliable place, but also requiring a lot of capital, are auction houses. Auctions such as those organized by Christie’s, Sotheby’s and Bonhams offer a wide selection of works of art, often with a guarantee of authenticity and detailed historical descriptions.

You can also look for works in galleries on your own. However, it requires commitment, time and knowledge of the art world. Art Gallery are a great place to purchase works by both established and emerging artists. Gallery owners often have close relationships with artists and can offer unique works and knowledge of their work. The final option is to buy directly from the artists. It can be beneficial, especially if the collection also includes emerging talents. Contact with the artist allows you to better understand the context and inspiration behind a given work.

Sites like Artnet and Artsy allow you to purchase art online, offering a wide selection of works from a variety of artists. Online auction platforms and online galleries can be a convenient way to purchase art without having to personally attend auctions or visit galleries.

In 2024, platforms like Masterworks make it possible to invest in art even for those who are not passionate about the field. Masterworks allows you to purchase fractional shares in works of art by famous artists, which increases the liquidity of these investments. Investors can easily transfer their funds back to traditional markets once the situation stabilizes there.

Does investing in art in 2024 still make sense?

Art, like other alternative assets, has a low correlation with major economic events and stimuli such as Federal Reserve policy announcements. This means that, unlike shares, cryptocurrencies or bonds, the value of works of art is not directly dependent on changes in interest rates or inflation. Thanks to this, investments in art can ensure portfolio stability even in periods of increased volatility on financial markets.

Market instability, armed conflicts and other political turmoil cause unexpected declines on stock markets. Bonds fall. At a time when traditional financial markets are exposed to unpredictable changes, alternative assets such as alcohols or art, are becoming an attractive investment option. They provide not only potential financial profits, but also the satisfaction of owning valuable and aesthetically attractive works of art. Investing in art in the long term is simply good business.

The most important auctions of the last two years

The year 2023 and the beginning of 2024 were exceptionally rich in events on the art market, bringing record sales results and attracting the attention of collectors from around the world. Below is an overview of the most important auctions that dominated these years. Investing in art in the long term is becoming more and more popular. And auctions can be exciting.

Evening Sale auction at Sotheby’s

One of the most important events on the art market in 2023 was the “Evening Sale” auction at Sotheby’s in New York. The auctioned works included works by such masters as Pablo Picasso, Claude Monet and Mark Rothko.

Monet’s painting “Nénuphars” achieved a record price, selling for $110 million.

Christie’s “Post-War and Contemporary Art”

Christie’s organized the “Post-War and Contemporary Art” auction in November 2023 in London, where works by contemporary artists were auctioned.

The biggest sensation was the sale of Banksy’s work entitled “Love is in the Air”, which fetched 12 million pounds, setting a new record for this artist.

Phillips “20th Century & Contemporary Art”

Phillips also contributed to significant events in the art market in 2023 by organizing the “20th Century & Contemporary Art” auction in New York. The works sold included works by Jean-Michel Basquiat and Gerhard Richter.

Basquiat’s 1982 painting “Untitled” sold for the impressive sum of $85 million. The painting presented above by the same author, El Gran Espectaculo (Nile), 1983, was sold for USD 5.2 million in 2005, and USD 67.1 million in 2023. The triptych on the history of slavery has greatly appreciated in the long term.

Jean-Michel Basquiat, El Gran Espectaculo (Nile), 1983. Courtesy of Christie’s Images Ltd. 2023.

Art Basel in Miami Beach

The Art Basel fair, held in December 2023 in Miami Beach, also attracted the attention of collectors and investors. It was one of the most important art fairs of that period, presenting the works of both young, promising artists and renowned creators. Among the most interesting transactions was the sale of an installation by Yayoi Kusama for $15 million.

Auction for the Leonardo DiCaprio Foundation

In January 2024, a unique auction organized by the Leonardo DiCaprio Foundation took place, the aim of which was to raise funds for charities related to environmental protection. The exhibited works included works by artists such as Damien Hirst, Takashi Murakami and Tracey Emin. The auction raised a total of over $30 million, which was a huge success.

Sotheby’s “Modern & Contemporary African Art”

In March 2024, the “Modern & Contemporary African Art” auction took place at Sotheby’s in London, which drew attention to the growing importance of African art on the global market. The biggest highlight was the sale of a painting by Nigerian artist Ben Enwonwu for £3 million, setting a new record for African art.

“The Collection of Peggy and David Rockefeller” Auction

The auction “The Collection of Peggy and David Rockefeller”, organized by Christie’s in May 2024, was one of the most anticipated events of the year. This collection, which includes works by artists such as Henri Matisse, Diego Rivera and Edward Hopper, has reached a total value of $832 million, making it one of the the most valuable private collections in the history of auctions.

2023 and the beginning of 2024 have proven that the art market remains dynamic and full of surprises, bringing record prices and unique works to global auctions. The next months promise to be equally exciting for… collectors and art lovers around the world.