Is art worthwhile as an investment?

Low interest rates are driving investors into the art market. But only a few objects fetch prices in the millions at auction. Read all about art as an investment here.

In addition to business magazines, the tabloid press also reports on auctions at which contemporary paintings change hands for astronomical sums. In reality, however, only a few works of art fetch high prices, for example paintings by Roy Lichtenstein or other modern classics. Read here what matters when investing in art objects.

The art market follows its own rules

Anyone planning to invest in works of art should be aware of the many pitfalls. Here is a list of the most important risks when it comes to investing in art:

    Intransparency: the art market is confusing. It cannot be compared to the stock exchange, which allows securities trading with daily updated prices. Although there are several indices that track the price development of artists, they cannot be used to make statements about future developments.
    Lack of liquidity: Works of art cannot be converted into money immediately. Art is acquired through dealers, at art fairs, at auctions or among private individuals. Accordingly, it can take a long time for suitable purchase offers to come in.
    Soft pricing factors: Fundamental facts flow into the share price. In the case of art purchases, soft factors include the prestige of the artist, the zeitgeist and the taste of the investor. Other soft factors can be the recognition value of the works, the investor's striving for prestige, and the desire to complete one's own art collection.
    Unpredictable performance of works by well-known artists: It is never possible to accurately forecast how exactly the appreciation of an artist's work will change over time. In fashion, for example, the coveted creations of famous designers sometimes tend to become cheaper.
    The up-and-coming artist doesn't become famous after all: An investment in unknown artists often seems to be associated with the greatest possibility of profit increase. However, it should be noted that less than 10% of these unknown artists manage to establish themselves permanently on the art market and exhibit with well-known gallery owners and achieve public purchases. The risk of not being able to resell their works at a good price is correspondingly high. This is conidered more risky than trading in download mt5.

Conclusion:

    Works by "emerging artists" offer the highest value.
    Buy your art only through auctions, reputable dealers or at fairs.
    Sufficient know-how is needed to recognize promising works.
    Protect your artworks from damage and have them insured if necessary.