Sign up here

Investing in art… Is it profitable?

Not so long ago, art purchases were simply about personal delight, about the pleasure of admiring and sharing a sublime piece of art. Today this has changed a lot. Nowadays, to consider the possibility of investing in art is to bet on a piece that entails a financial benefit, rather than admiring a creation just for pleasure.

Although the aesthetic delight is obviously still there, it has a factor of profitability, so it is not surprising that major doubts are about whether or not investing in art really generates profits.

Figures speak for themselves

Entering this business is a matter of knowing buyers. According to one of the latest reports published by one of the most important financial groups in Spain, 97% of buyers of art works acknowledge that they usually purchase them motivated by purely emotional reasons, while 49% state that they are impelled by the profit that those works could generate in the long term. In spite of the fact that this analysis seems to confirm the main reasons that lead to acquire this type of goods, it is also important to know other data that allow us to see the profitability of art.

According to other research published by Citibank, a U.S. financial company, the art market has shown since year 2000 a steady development of 13.7% worldwide. In turn, an article by Art Market Research stated that, for the last 10 years, profits of contemporary works of art have increased by 12.4%.

What do we mean by that?

You should first know that, as with any kind of investment, you might win or lose. However, the risk of losing is less probable as time goes by, since the value is more likely to increase.

After all, experts in art auctions agree on the fact that in recent years, the value of artistic works has been greater than the losses they could cause over time.

Artistic pieces are becoming assets that buyers acquire and do not forget their aesthetic value, so they can be delighted while the value of their artworks increases. Notwithstanding, in order to be sure that you are in front of a great artistic treasure, we always recommend that the investment process should be carried out from renowned places, such as galleries or art auction houses, as this gives it a plus in terms of its origin, the probability that it is a stolen piece or a fake is reduced, and it guarantees its sale at on-site or online auctions.

Besides knowing the origin of the piece, where it comes from, or the background of its former owners, other important aspects that you should have in mind, because they will influence the positive appraisal of your artworkis the originality and eccentricity of the piece, as well as its quality, beauty and sales history.

It is also relevant to examine the state of preservation and check whether it has many important or poor restorations, as well as repaints that could result in decreasing the value of the piece. In such cases, you should ideally visit an auction house, like Balclis, and thus be sure that you are investing in safe art.

Is it profitable to bet on Spanish art?

Yes, it is! Currently, acquiring pieces from Spanish artists is a completely profitable and safe investment, and particularly if we bear in mind that their costs are far below than works from the rest of Europe. So, if you’re just getting started in the art market, and want to get a collection that doubles or triples in value in the future, this is your chance. If you search the internet, you can find online and on-site painting auctions, with unique pieces at very good prices.

In Spanish art galleries and auction houses, the average price of contemporary works of art is about €5000 – €6000, which is almost half of the average global price. Obviously, we do not want to underestimate the work of Spanish artists; on the contrary, it is a fact that works by artists such as Pablo Picasso, Salvador Dalí, Joan Miró, Tapies, Juan Gris, Ramón Casas, etc. are among the favourite by the great investors worldwide. But, in such cases, figures are much higher…