Art always makes a hole in the range of advice when investing or protecting savings. The art world is within reach of all budgets, experts point out, with a vibrant moment in the market -the record for a 20th century work with a Warhol has just been broken- and with no signs of relaxing, but it is necessary to have baggage to not miss the shot and achieve profitability.
“You can invest in art, although you have to know what to buy, at what price and where to sell. Knowing the market very well and thinking in the medium-long term, eight or ten years”, says Elisa Hernando, head of the Global Art consultant. On budgets, she sees no limitations below. According to data from ArtPrice, in 2021 50% of the works changed hands for less than 1,000 dollars. “You don't have to be a millionaire, you can start from small amounts. From 2,000 or 3,000 euros you can access established artists and get a good revaluation”. Aiming much higher, 100,000 open doors to "most established artists, international, unique works."
Who chooses art combines in part pleasure, admiration for the work and search for profitability. "That the prices of many artists have risen considerably makes it attractive to buy art as an investment," believes Alexandra Schader, senior director at Sotheby's Spain. "But this does not mean that all works are good economic investments, not everything goes," she warns. You have to "invest carefully", knowing the artist thoroughly: understand his career, understand why some of his works are worth more than others, his global projection, the exhibitions he has planned... This advises putting yourself in the hands of professionals in the sector, especially the first time. "If the main goal is to invest, you have to know the market well," summarizes Schader.
Returns of 6%-8% are calculated from auction and second-hand sales. It can be higher depending on the period – modern art and art after the Second World War concentrate more interest – and in extreme cases, such as a Basquiat sold in 2021, it goes to a return of 9,000%, collects ArtPrice. As an advantage, art can argue that it is less volatile than other assets. On the other side, it is less liquid. But it is gaining ground: "Although there have always been investor collectors, the market did not have the enormous volume that exists now," says Schader. Globalization and technology explain the pull, she points out.
When plotting the investment strategy there can be two main approaches. One, trying to discover artists “before they become stars in the market”, as has recently happened with Flora Yukhnovich, Christina Quarles or Shara Hugues, Schader exemplifies. "Five years ago many of these young artists were unknown and their work could be purchased for low amounts." The other model is to go more safely, to established artists, buying –it will be more expensive in comparison– and keeping the works “for the medium or long term”. "If they're bought at the right prices, they shouldn't go down in value in the future," she warns. Here one could already speak of Chillida or Tàpies.
Made a purchase, what makes it revalue? The death of the artist freezes the offer and would increase prices if there is demand, as has happened with the Warhol sold this week for 195 million. "Also the greatest recognition of the artist, that a museum for his collection bought his work, that he has made individual exhibitions," Hernando reviews.
Jaime Sordo, president of 9915-Association of Private Collectors of Contemporary Art, asks to separate between the investor and the collector, the latter guided by "a passion" and who only usually sells "out of imperative need" or because he can get hold of a better work . Thus, he does not see "a person in love with art" among the investment groups, the sheikhs who pay millions for works or someone who buys to sell in specific investments, advising against it if only a profit is sought. He does recognize more sense in investing in art as a refuge of value. “The people who want it to be revalued for shelter, with no intention of selling, predominate,” supports Hernando. That yes, it is necessary to take into account that “many handicaps also occur because there are artists who disappear from the market”, admits Sordo.
Regarding the future, “everything is volatile, and art is stable. The market is boiling”, says Hernando.
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