Art is valuable in many ways, whether the medium is paintings, prints, or even illustrations. Not only does art look great, tell a story, and impact your mood, but it can also be worth a lot of money. For emerging artists and art enthusiasts alike, investing in art offers a pathway to engage with the creative community while potentially securing financial returns.
As well as this, when you invest in art, you are directly impacting the lives of artists around the world. More and more people are making the decision to invest in art. There are countless benefits to art investment, one of which is that it can help you generate a solid profit.
So, is art a good investment, and more importantly, why should you invest in art? Read on for our top five reasons why you should invest in art today.
1: Because You Love Art
Arguably, the most prominent reason to invest in art is that you have a genuine passion for it. When art collectors purchase art for their art collection, they often choose paintings or prints that resonate with them.
They won’t choose works of art that don’t appeal to them, but they will opt for works from artists they love or pieces that speak to them in some way.
If you love art, it makes sense to invest in it. If art is your passion, you likely have a good eye for art and a solid knowledge of the art world, which can give you the upper hand when investing in art.
Purchase pieces of art that you can imagine hanging on the walls in your home or office – art that will lift your mood whenever you see it. Then, you may sell it at a later date, potentially for a profit.
Likewise, if you are intrigued by a certain artist or piece of art from a specific time period, then you may develop knowledge that can help you at an art auction, art fair, or art gallery. Your passion for art can also help you source rare finds and limited-edition pieces.
Unlike other investments, for example, stocks and shares, you can enjoy art. Art can lift your mood, make a great conversation piece, and tell a story. If you love art and are considering investing in fine art, explore these tips for building your art collection.
2: Because Art Is A Stable Investment
One of the key reasons to invest in art is because it is considered a stable investment. The art market has proven to withstand times of economic uncertainty, displaying resilience time and time again.
While other markets may be affected by economic instability, there will always be art investors and art for sale. Consider the COVID-19 pandemic. Many other markets were hugely affected during this difficult economic time, but the art market stood strong.
In fact, in terms of stability, art investments can be compared to gold investments. Ultimately, regardless of the Bank of England base rate, investing in art is always a great choice.
When you invest in art, you not only maintain the value of your current wealth but can also make a solid profit in either the short term or the long term.
3: Because Art Investment Outperforms Stocks
Art is an asset that benefits from continuous market growth. In fact, art frequently outperforms stocks and shares; the stock market can rise and fall, but the art market is much more stable.
Art is rarely affected by inflation or currency devaluation and performs well against market volatility as opposed to stocks, shares, and other investment opportunities. Between 1995 and 2020, the contemporary art market experienced fewer losses than stocks.
There were recorded losses of only 4% when referring to 3-year investment lengths. Due to buying art being a more stable option than buying shares, art investments can act as a hedge against inflation, making them a great asset.
4: Because Art is Tangible
Art is a tangible investment – it’s something that you can touch and enjoy. You can resonate with art and form a connection, as opposed to other forms of investment such as stocks and bonds.
You can hang a piece of art you love on your walls and enjoy it every day. Likewise, you can pass the artwork on to your family members as an heirloom so they can enjoy it too. You don’t have to sell a piece of art right away; you can keep it in the family for generations until it’s ready to be sold for a profit.
In addition to this, the value of art doesn’t decrease when consumed, whereas wine investments, for example, will drastically decrease in value when consumed. Even if the art you add to your investment portfolio doesn’t increase in value over time, you will get your money’s worth as long as you love and enjoy the art in your collection.
5: Because Grove Gallery Can Help You
At Grove Gallery, we understand that the art market can be difficult to navigate. This is why we have a dedicated art advisory service on hand to guide you through the process. An art advisor can help you choose the right piece of work from the right artist at the right time, catering to your preferences and requirements.
Our team of art experts can help you generate an average of 8% to 12% profit from art annually, ultimately increasing the chance of a successful investment in the secondary art market. We can help you with not only buying art for your collection but also selling it for a profit, increasing the chance of a successful investment.
Grove Gallery’s art advisors have experience working with clients from around the world and can guide you through the entire process. To learn more about the world of art investments, check out this helpful guide. Likewise, to find out more about investing in art with Grove Gallery, you can visit our London art gallery today or contact our team at 020 8103 4905.