Investing in fine art is becoming commonplace for serious investors looking not only to diversify their portfolios but also to enrich their lives by showcasing art while supporting artists. Artalistic goes over the facts and figures while explaining how our specialists can give you advice about diversifying your investment portfolio with fine art.
Investing in art has become mainstream
Diversify your portfolio with a significant investment class
Our constantly fluctuating economy is plagued by successive financial crises. Investing in fine art - which is highly uncorrelated to other asset classes - is a sound way to diversify your assets and offset potential losses while generating good returns. A more than credible alternative to traditional investments, the contemporary art sector has enjoyed a steady rise in popularity since the turn of the century. The Artprice 100 Index (the world leader in art market information) confirmed these statements with concrete figures, stating that the global art market increased nearly 400% in 20 years.
The Numbers speak for themselves
There were approximately 500,000 art collectors at the end of the Second World War, now there are more than 70 million individuals worldwide that invest in the art market. Here are a few more figures illustrating the vitality of this booming sector:
- Art sales revenue has quadrupled in 20 years, from $3.2 billion in 2000 to $13.3 billion in 2019
- Contemporary art represents approximately 40% of the world market
- The countries most involved in this trend are the United States, China, the United Kingdom and France respectively.
Among the most notable sales on record is Leonardo da Vinci’s Salvator Mundi that sold for $450 million in 2017. Pieces by contemporary artists such as Jackson Pollock, David Hockney, Mark Rothko and Edward Hopper have also sold for record-breaking sums. Of course, the art market is teaming with investment-worthy artists, purchasing a piece by an emerging artist can also be incredibly fruitful.
Invest in fine art: a rapidly expanding market
Another factor that might make you decide to invest in art is that this market is no longer the domain of eccentric aficionados or connoisseurs of fine art. It is now seen as a serious strategy for diversifying your investment portfolio, as illustrated in the following figures: according to a study published by Artprice in 2018, nearly 80% of sales were for pieces priced under $5,000. This proves that you can begin your art investment journey without breaking the bank. If you invest wisely and diversify the pieces you invest in, you may purchase a piece that will substantially increase in value in a few years! Doing your homework on emerging artists and investing in the right piece can be surprisingly lucrative!
The online art market’s meteoric success
The contemporary art market has taken on another interesting facet - digitalization. Online sales are rapidly increasing and countless virtual galleries have appeared on the web, creating a more accessible way to invest in art. However, we must warn you to check the credibility of these websites. Only a handful of them are recognized as serious platforms that provide you with tailored customer support throughout the purchasing and selling process. Rest assured that Artalistic has been recognized as one of the world’s leading websites for buying and selling fine art. Artalistic’s success has even drawn the attention of major companies like the global media company Forbes, who featured an article interviewing Artalistic’s founder Cynthia Soddu.
Financial reasons to invest in fine art
Investing in fine art is an excellent, safe way to diversify your assets provided that you follow a predefined strategy or seek the help of experts. We recently published an article that can help you take the first steps into the world of art investment.
This investment class also provides advantageous tax breaks as the pieces of art you invest in are not subjected to yearly taxes. In most countries, your investment can only be taxed at the time of purchase.
Diversify your investment portfolio with Artalistic
Artalistic is an online art gallery featuring thousands of paintings, drawings, photographs and sculptures, providing you with a panoply of pieces to begin your venture into the world of art investment.
We provide you with a safe and secure platform that is managed by seasoned professionals. Our goal is to make your experience seamless and verify the authenticity of each piece that is posted on our site. Our team will accompany you through every step of the process and can even help you select pieces that fit your investment strategy while meeting your aesthetic needs.
Customer support tailored to you
The art market is complex and constantly evolving, that is why we are here to help you understand current trends so that you can achieve optimal asset diversification.
Artalitic’s team is backed by years of experience and a global vision of the art market. Choosing Artalistic means working closely with recognized specialists who will focus on meeting all of your expectations.
Feel free to contact us with any questions; we will answer you as soon as possible. Thank you for your patronage and see you soon for the latest news from the art world!