Investing
Insights and Perspectives

‘Only Buy what you like’ School
Today, it is possible to chart the price movements in the art market at the artist and at the sector level. There is no apparent logic in relying on one’s personal taste to assemble a portfolio of Emotional Assets or art objects for investment purposes. Therefore, from a pure investment perspective, it makes little sense to follow the ‘only buy what you like’ school of investment advice.

In the final analysis, our attempts should focus on a better understanding of what combination of information and skills make the management of an art portfolio as profitable as the management of an equivalent fund of capital employed elsewhere.

Superstars
The art market has become similar to other professions and disciplinary fields that are subject to an extremely skewed distribution of income. There is a broad base of artists who hardly earn anything and a few artists at the top who receive superstar rewards.
Art Market Cycle
There is some evidence to suggest that the art market cycle is becoming shorter, giving rise to more tactical and opportunistic investment strategies.
This is the basis upon which many art funds have been established in recent years. 

 

Rodin

The superstar phase of the art market cycle requires the following art market climate:

  • A rapidly expanding art world
  • A strong inflow of financial resources
Although historically the value of most works of art has risen over long-term periods, there have been periods where this has not been the case. There is no guarantee that the art market will continue to rise in the future.
 


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