Before Your First Art Investment... You Need To Know This
Updated: Mar 1
"Alternative assets such as fine art might have a place in your portfolio as well."
While buying art for your kitchen or living area can be a great way to add color and personality to your space, it also could be a great way of investment. Yes, There's no doubt art can be a great investment, and it's growing in popularity. According to the 2022 Global Art Market Report from Art Basel and USB, the global art market reached $65.1 billion in aggregate sales in 2021, up 29% from 2020. Stocks and bonds are generally the first assets that come to mind when people think about investing. However, investors tend to diversify their portfolios. They might invest in artworks by relatively unknown and aspiring emerging artists; classics by well-known masters, or artworks of artists somewhere in between.
For investors looking to preserve their wealth during a volatile economy, art can also act as a hedge against inflation. Because it's a tangible asset, art can perform well during periods of high inflation, and it's not as susceptible to market fluctuations. To make your money grow alternative investments like fine art are often used as a means of portfolio diversification. Classics in the art world, like Monets and Picassos, can sell for millions of dollars. Pieces from more recent artists like Andy Warhol and Jean-Michael Basquiat can sell for tens or even hundreds of thousands of dollars. Art has an impressive growth history. According to CNBC, price appreciation in art has outpaced the S&P 500 over the past 25 years with average annual returns of around 14%, making it a compelling investment opportunity. But how do you get started? why do some artworks increase in value over time, while other artworks do not carry the same chances of investment?
What Makes A Painting Unique?
"The demand and supply rule"
"Scarcity indeed equals value."
The demand and supply rule works here too, for artwork with no uniqueness in terms of subjects' expression or style, or technique the chances for its rise in value are absent, scarcity indeed equals value, and the uniqueness of the artist's style is crucial to limit the supply and create a demand around his artworks. The uniqueness could be in the story behind the artwork, the technique the artist used, the composition, the message that the artist delivers in the artwork, or even being the first time to be non-subjective like the occult abstraction paintings by Hilma Af Klint. Notice, What was innovative one hundred years ago, of course, is not innovative today, and what was contemporary in the 60s is not contemporary in 2020.
What Message Does The Painting Convey?
"The message the artist is trying to immortalize"
Art is a timeless message from the artist to his viewers, a true artist would use an emotional approach to define or redefine the basic concepts of humanity, a true artist mainly practices art as an illuminating ritual to visualize the path of humanity toward a brighter future. In the process of evaluating a piece of art, before talking about Light and shades or the color palette or the techniques the artist used, the message the artist trying to immortalize and the artist's ability to deliver it to his viewers' hearts is what really matters.
What Artists Are Worth Investing In?
"The versatility of the artist's portfolio"
Do not invest in a new original artwork without having an estimation of the artist's potential, inspect the signature of the artist on the canvas, and in the artist's portfolio you can see the development of the artist's skills through time, does the artist has the potential to rise in value? The versatility of the artist's portfolio artworks in terms of style (Realism, impressionism, expressionism ….), techniques, and subjects (landscapes, still life, figurative....) indicates the professionalism of the artist, otherwise, the last thing collectors want to do is buying a hobbyist painting.
What Defines High-Quality Art?
"Art as an illuminating ritual"
Criteria for an oil painting are not easy, and it goes beyond the first impression and emotional effect the Artwork leaves in the heart after passing through the eyes.
There are a few rules that an art collector would consider in the process of evaluating an oil painting. In the process of evaluating a piece of art, before talking about Light and shades or the color palette or the techniques the artist used, the message the artist trying to immortalize and the artist's ability to deliver it to his viewers' hearts is what really matters.
How The Artist Utilized Light Transitions And Shades?
The sensitivity of the artist towards the light and shades is crucial for high-quality visual artwork, painting realism impressionism, or even expressionism, the ability of the artist to work with light and shades indicates professionalism.
What Colors Are Used In The Painting?
An artwork will create very different energy depending on whether it contains all one color, a few colors, or many colors. And then the type of energy they emit will depend on what exactly those colors are. For example, a monochromatic painting that contains seven different tints and shades of off-white will look and feel entirely different than a painting that has the same composition but is painted with every color
The Composition Of The Painting
Composition is the arrangement of elements in a work of art. It’s how the artist arranges shapes, colors, and lines to create a pleasing effect. A good painting composition can make a painting look effortless, while a bad one can make it look chaotic and unappealing.
The Theme Of A Painting
Gathering all elements together and targeting a homogeneous or heterogeneous emotionally effective artwork, sometimes effective heterogeneous artwork is much harder to reach than homogeneous artwork. Interpretation and the clarity of the theme to the viewer, Creativity, originality of the depicted theme, and quality of artistic composition, to consider investing in an oil painting, the painting must be perfect. Does the artwork touch the audience? how was the interaction between the viewers and the artwork? audiences' facial expressions when they look at the artwork? does the artwork catch their eyes? The value of a piece of art is not only related to the painting quality, but the story behind the artwork is also a crucial subject of value.