Are Paintings A Good Investment?

In 2024, more people than ever are investing in art, whether it be prints, sculptures, paintings, or other mediums of art. If you’re considering investing in art, you may be wondering whether paintings are a good investment or whether you should opt for other asset classes.

So, are paintings a good investment? In short, yes – paintings can be a highly lucrative investment. However, it’s important that you conduct thorough research before you invest in paintings. The art world isn’t always straightforward – not all paintings will increase in value or retain their value. In this blog post, we’ll be exploring:

• Why paintings are a good investment
• Factors that can determine the value of art
• Paintings vs print investment
• How you can invest in art today with Grove Gallery

What Determines Whether Paintings Are A Good Investment?

Many factors can determine whether paintings are a good investment or not, including the artist, the quality, the provenance, and many more. For example, a poor-quality painting on the primary art market that has been created by an artist with no following will hold much less value than a pristine painting created by a blue-chip artist.

The Artist

Arguably, the biggest factor that can determine whether an art investment can generate profit is the artist. Art from new artists will usually be much more affordable than art created by established artists. Blue-chip artists have a history of creating artwork that increases in value, making blue-chip paintings a great option for art investors.

If a particular artist has previously created artworks that have performed well on the art market, chances are, any paintings you purchase from the artist will be a good investment. That being said, art from new artists can be a great investment too – although it is considered a high-risk investment as you don’t always know whether the artist will increase in demand or popularity.

The Design

Certain aspects of the design of the painting can determine its value. For example, if the painting is a portrait, who is the subject? If the subject is a well-known figure, for example, then more people may wish to purchase the art, increasing the overall demand and value.

Likewise, if the subject is female, it may sell better – a little-known fact is that on average, female subjects sell better than men - although art created by women sells for 42% less than men. If the design is aesthetically pleasing, it will likely appeal to more people; ultimately making it a better option to invest in.

The materials used can also influence the value of a painting, as well as the size of the painting. However, in terms of contemporary art, these factors are considered much less important.

The Condition

Naturally, the quality of art can hugely determine how much a piece of artwork will be valued. For example, a painting that has been preserved poorly will be a less attractive option to art collectors - but a painting that has been kept in perfect condition will add value.

This is why many art collectors will store their artwork in storage facilities, or take measures to ensure that the art is protected.

The Provenance

The provenance of the work is an important factor to consider when investing in art. This refers to the history of ownership of a piece of art once the artwork makes its way to the secondary market.

For example, if a painting was previously displayed in a famous museum, or belonged to a famous figure, the painting will likely be much more valuable than a piece of artwork on the primary market from the same artist. Having the correct documentation for a piece of art means you’re more likely to be able to sell it for a high price.

Why Is Art a Good Investment?

There are many benefits to buying art – first of all, art is a tangible investment. Paintings are something you can enjoy and hang in your home – and viewing art won’t affect its value. Unlike stocks and shares, you can admire a work of art. Art can tell a story – whether you pass it on as an heirloom or hang it in your office, art can be a conversation piece.

After all, a picture is worth a thousand words. Like many alternative investments such as collectables (for example, trading cards or coins), art investment can be a great way to diversify your investment portfolio. The art market has a low correlation with the stock market, making it great for diversification. Paintings can generate a solid profit and secure your wealth in times of financial uncertainty. Art can also be a great short or long-term investment, depending on your preference.

However, most art investors have a long-term outlook, as it holds onto its value and can generate moderate returns over time. In the last 38 years, contemporary art has delivered a return of 7.5% per year to investors – making art a highly attractive investment opportunity. The total value of transactions in the art market was around $65 billion in 2023.

Paintings vs Prints

You may be wondering what the difference is between paintings and art prints. Paintings are original pieces of art that have been painted by an artist – they usually feature texture from brush strokes.

Prints, however, are created using modern printing techniques and lack the texture of an original painting. Original paintings typically appraise for higher values than prints – including limited-edition prints.

How to Invest In Paintings

Paintings are a great asset to invest in – art is a tangible alternative investment that you can enjoy. Art investment has numerous benefits – for example, you can invest in art to diversify your portfolio, or use art investment as a hedge against inflation. The first thing you should consider when investing in paintings is where you’re going to purchase art.

Many people will buy art at an art auction, which is a great place to find secondary paintings. Art fairs can also be a great place to find art to invest in – for example, the famous Art Basel which attracts many artists, art collectors and art galleries.

Art fairs can be a great place to find blue chip artwork to invest in and discover art from emerging artists to add to your art collection. One of the best places to invest in art is through art galleries. At an art gallery, you can not only view art but purchase art too.

Many art galleries, like our very own Grove Gallery, have art advisors on hand to help you navigate the art market. Both new and seasoned art investors alike can benefit from these services. An art advisor typically has plenty of experience in the art market and can help you to make the right investment.

Art can also improve your well-being - check out our blog to understand how. Invest in paintings today with Grove Gallery. You can purchase artworks created by artists such as Stony, Picasso, Warhol, and many more. Our art experts can help you generate an average of 8% to 12% profit from art investment per year, so contact us today to get the ball rolling on your investment journey.