With art against crisis
It is possible to avoid the next economic crisis with a
simple trick in reorganizing the portfolio of your collection-property. Invest
more in art, especially on a level below 12.000 Euro. Here are the highest
chances for increasing the values on a mid-term range, independent from political and global
economic situations.
Critics of art-investments cheered, as in 2015 the complete
art-market decreased with 10 % and another 23 % in 2016. It had been a good
time to buy art as an investment, because in 2017 already it increased in total
with 40 % and brought new records in gallery sales, auctions and art-fairs.
Investors trust again in the art-world. In 2015 had been the
auction record 180 Mio. USD. In May 2018 the Rockefeller Art Collection had
been sold at an auction at Christie’s in New York with 684,4 Mio USD.
Thierry Ehrmann writes in his „artprice annual report 2018“,
that the unexpected growth of the art-market in 2017 and 2018 had been because
of the positive economic development in both, the western world and China. New
York and Beijing are the most important places in art-industry. In US, UK
and China together, 81 % of the art-market by value is happening. The negative
development in the US economy as well as the consolidation of the growth in
China since nine months did not arrive on the art market yet. But it has to be
taken in considering, that the forecasted economical consolidation, might
arrive in the art world as well. The warnings of institutions like the European
Union Commission as well as the European Central Bank are serious.
Art-investors are still busy with occasions to obtain works
of influential artists. The big names are required, artists who are excellent
branded like Pablo Picasso, Jeff Koones or Gerhard Richter still in favor.
But more and more are searching for alternatives, because
the art-blue-chips are depending on the international finance-markets. Collecting
art can be a passion. Especially private collectors are in danger to react too
emotional. It seems that the art-world is following other rules, or maybe more
rules, because art is a very diverse sector, and the real value is just
existing in the one who wants to buy.
Aside on blue-chips, institutional collectors like museums,
are interested on diaspora collections, like African Art in France, Afro-American
art in US but as well Eastern European Art is still emerging. Emerging artists
contribute, that the art-market can be more stable and secure for investors.
The risk is smaller because you can spread it on more shoulders, and the
dynamic in values can be higher, because of the life age of the artists and
psychological factors like ambition. The value of your portfolio can grow with
the career of the artist. It is possible to develop an ambitious Romanian
painter of 35 years from 2.000 up to 20.000 Euro. Buying 10 of his works in the
right time can be a reasonable investment. Now is the right time to buy young
and emerging artists.
But here the success is – as like almost everywhere – the result
of efforts. All three parties, artist, gallerist and collector should discuss
together a strategy to develop the market appearance and price-index. Nowadays,
in order to avoid financial disasters, the old slogan comes back: “collecting
means developing”. Anyway, planned and controlled development can be the
best strategy to prevent from impacts of crisis.
