Investing in art can be hit and miss but, when it does pay, the return on investment can be considerable. The tale of Van Gogh is a case in point; a tortured genius driven mad by his own failure to be recognised. Only selling one of his own paintings in his lifetime, Vincent Van Gogh lamented the fact that it seemed the canvas and paint he used was of greater value to the world than his paintings. Producing over 2,000 pieces in his lifetime before killing himself in despair, Van Gogh would never know that the world would marvel at his work and that his paintings would sell for millions.
Art Patronages – Adding Value to Art
What Van Gogh lacked was a significant backer – and this is the essence of how art investment works. It is also how great artists are discovered; the chance of finding an art genius outweigh – for many – the chance of backing a lesser artist. Typically, a wealthy benefactor would have supported a struggling artist. They scoured the art scene for someone they could believe in and then paid for them to produce artworks that they could bring to the rest of the world, through exhibitions, and reap the financial rewards and kudos. While it may still happen this way for a small number of artists in the world, technology is empowering more and more people to invest in art and share in artists’ patronage.
While how people are investing in art may be changing, the traditional idea of purchasing art and reselling still exists. However, technology is democratising the process and making it possible for more people to invest in art through collaborative crowdfunding.
Putting a Price on Art
Art is not linked to the stock market, which means that its performance is not closely connected to the economy. With the pandemic confusing the markets, investments in alternative assets are proving to be of great interest and more accessible than ever before.
The Maddox Advisory is part of the Maddox international gallery group. It enables individuals to join in with crowdfunded art investments and claims to deliver 21.40% return on investment, while Artprice 100 states that ‘Blue Chip Art has outperformed the FTSE 100 by 402% in the last 20 years since 2000. Deloitte also claims that 85% of wealth managers recommend art investment in a balanced portfolio.
Not Sure Where to Start with Art?
Art can be subjective and, if you have funds to invest for the love of art, you can choose by your eye alone. If, however, you are looking for a healthy return on investments, it can pay to leverage experts in the field. As well as the Maddox Advisory, there are art investment services that make it their business to know the art trade, the trends and upcoming names, where to watch and who to invest in.
If you have a good instinct for what’s going to sell well, you can buy and sell art via the internet. There are sites from which you can buy original oil paintings or photography from independent UK artists – The Art Finder is an excellent resource that offers art for purchase from ultra-accessible prices, such as £60, up to £6,000. There are also sites that specialise in particular disciplines, such as photography. Lumos is an online network of over 40 galleries that emerged from a hyper-successful photo gallery in Berlin and lets you invest from your laptop. Offering limited edition works rather than prints, you are able to source and invest in art that you enjoy and that could offer you a return on your investment.
Read our 4 Steps to Start Investing in Art and Do I Need an Art Adviser? for more information on investing in artwork.
Pawnbroking Loans on Art
At Suttons and Robertsons, we have a network of art specialists that we turn to when offering valuations for short term pawnbroking loans on art assets. We work with art from any period and across any discipline, from classic paintings to modern sculpture or photography.
If you want to release equity from your art collection, we can truly provide a bespoke premium service to suit your requirements. Call us today.
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