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Art as an Investment

The Financial Times last weekend featured an article looking at Art as an Investment and although we are cautious about recommending art as an investment, as it is no exact science, it is interesting to learn that the art market is becoming more and more lucrative.

Customers are beginning to realise that discerning purchases can reap the rewards and often provide a much greater return than any savings account due to the current poor interest rates. Consequently, an interest in art as an investment is growing and not just for the big art collectors, ordinary investors are looking to art as a safe place to put their money. 

There are a few things to consider such as how long to expect to invest for, art is by no means a quick win and the increase in value will nearly always be greater over a longer period of time. In which case you have to think about storage and insurance and factor that in to the costs of buying art. As a long term investment you should expect to hold a piece for minimum of 5 years, it is  not recommended as a means of short term gains, consider insurance and  storage costs which rise as a collection increases but there are specialist companies that can cater for that.

That said with careful consideration art can be quite an affordable way of investing your money. There are several affordable art fairs, and it is suggested  to also look out for art school graduates  from universities like Goldsmiths and Central St Martins (who have produced the likes of  Sarah Lucas, Damien Hirst, Sam Taylor-Wood and Peter Blake) keeping an eye on emerging artists as future potential.

What to look for... arts advisory firms can help with advice on genres and artists that may do well, banks now include art advisory services as they now recognise art as a growing area for investment for their clients and there is also potential to invest as a group and have joint ownership of artworks. There is now an index that tracks the price of art. It not always accurate as it only accounts for 6% of the art market, so much art is traded privately so not totally clear not transparent, but it is a good gage of what’s going on.

Finally it is worth remembering the Own Art scheme that we offer at artrepublic in association with the Arts Council. Many of the Limited Edition art prints at artrepublic are included in the scheme. You can apply for a loan between £100 and £2,000 when purchasing eligible art and spread the cost in equal instalments over a period of 10 months – interest free.

If you would like any information on available works or to enquire about artists we have in the gallery please call +44 (0)1273 724829 or email brighton@artrepublic.com

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