About – Art As An Investment
During the last major bear market, which was around the time of the Vietnam War (1966-1975), stocks fell 27% while art rose an extraordinary 256%. In the Korean War (1949-1954) art rose 108% while stocks only rose 67%. In World War II, art beat stocks again. Much like any other time of war and of recession in the past, today art is outperforming stocks.
According to Sergey Skaterschikov, chairman of the board of directors of Indexatlas Group, "The art market is one of the world's oldest investment markets. But it is the only one that has remained immune to the social changes, new technologies and other drivers that have fueled the evolution and infrastructure changes of every other investment market.”
Although the buying and selling of art for investment purposes has been a time honored strategy, historically it only took place in a impermeable world dictated by small group of elite, wealthy individuals.
Today the art world is vast and ever-growing. Due to the presence of the internet, artists are self promoting to a much larger group of individuals who are interested in investment art trends and its movement. Galleries are learning that in order to stay competitive they have to open their doors to the World Wide Web. And the general public is jumping on the investment art bandwagon.
The playing filed in the art market is thus leveling out. Where as wealthy art buyers are still enjoying million dollar returns on their investments, the rest are able to get a piece of the pie. Even those that only have $50 to set aside can participate in the art market. After all, in 1964, Andy Warhol’s famous Campbell Soup prints sold for $6.00, signed. Today, the same prints are worth over $8,000.
The trends are powerful. People are buying art that simply moves them, and seeking a monetary benefit in return. To date, art appreciates at an average of 18% a year – not bad for simply buying something enjoyable.
