Is Art a Good Investment? How to Profit from the Art Market

Overview
Art has long been a symbol of human creativity, expression, and culture. From ancient cave paintings to modern abstract masterpieces, art captures the essence of our society and reflects the values, emotions, and aspirations of different eras. Beyond its intrinsic value as a form of visual communication and aesthetic pleasure, art has also emerged as a significant investment opportunity for individuals and institutions alike.
The intersection of art and investment has led to a dynamic and evolving market, where collectors, galleries, auction houses, and investors converge to buy, sell, and trade artworks. This fusion of creativity and commerce has created a unique ecosystem that offers both financial potential and cultural enrichment. In this article by Academic Block, we will explore the nuances of investing in art, from understanding the market dynamics to navigating the complexities of valuations and strategies for building a successful art portfolio.
Understanding the Art Market
Before diving into the nuances of investing in art, it's crucial to grasp the fundamental dynamics of the art market. The art market operates as a complex ecosystem encompassing galleries, auction houses, dealers, collectors, artists, and investors. Unlike traditional financial markets governed by strict regulations and transparency, the art market maintains a degree of opacity and subjectivity, making it both alluring and challenging for investors.
One of the defining features of the art market is its subjective nature. The value of art is often determined by factors such as aesthetics, historical significance, artistic innovation, cultural relevance, and market demand. Unlike stocks or bonds with quantifiable metrics such as earnings, dividends, and price-to-earnings ratios, valuing art involves a blend of qualitative and quantitative assessments, often influenced by trends, taste, and perception.
Types of Art Investments
Art investments can take various forms, each with its own characteristics, risk profiles, and potential returns. The primary categories of art investments include:
-
Fine Art: Fine art refers to original works created by artists across various mediums such as painting, sculpture, photography, and mixed media. Investing in fine art involves acquiring pieces from established or emerging artists, with values influenced by factors like artistic reputation, provenance, condition, and market demand.
-
Contemporary Art: Contemporary art encompasses artworks created by living artists or those produced in the last few decades. This category is known for its dynamism, diversity, and experimental nature, attracting collectors and investors seeking avant-garde expressions and potential future value appreciation.
-
Old Masters: Old Masters represent works created by renowned European artists from the Renaissance to the 18th century. Investing in Old Masters involves acquiring paintings or sculptures with historical significance, rarity, and artistic merit, often appealing to collectors with a penchant for art history and cultural heritage.
-
Modern Art: Modern art spans the late 19th century to the mid-20th century, featuring iconic movements such as Impressionism, Cubism, Surrealism, and Abstract Expressionism. Investing in modern art involves acquiring works by celebrated artists like Picasso, Monet, Warhol, and Dali, with values influenced by artistic innovation, cultural impact, and market demand.
-
Emerging Artists: Investing in emerging artists entails acquiring works from up-and-coming talents with the potential for future acclaim and value appreciation. This segment of the art market offers opportunities for early-stage investment, but it also carries higher risks due to the uncertain trajectory of artists' careers and market reception.
Benefits of Art Investment
Art investment offers several potential benefits that appeal to investors seeking portfolio diversification, tangible assets, and non-correlated returns:
-
Diversification: Art investment provides diversification benefits by offering exposure to an asset class with low correlation to traditional financial markets such as stocks and bonds. During periods of market volatility or economic downturns, art investments may exhibit resilience or even appreciation, acting as a hedge against broader market fluctuations.
-
Tangible Assets: Unlike stocks, bonds, or derivatives that represent abstract financial instruments, art investments involve tangible assets in the form of physical artworks. This tangible nature can provide a sense of ownership and aesthetic enjoyment, enhancing the overall investment experience.
-
Potential for Capital Appreciation: Art investments have the potential for capital appreciation over time, driven by factors such as artistic reputation, market demand, historical significance, and scarcity. Successful acquisitions of valuable artworks can generate significant returns, making art a compelling investment avenue for long-term wealth growth.
-
Cultural and Social Value: Investing in art enables individuals to contribute to cultural preservation, artistic innovation, and the support of artists and creative communities. Many investors view art as more than a financial asset, recognizing its intrinsic value in enriching lives, fostering creativity, and preserving cultural heritage.
Challenges and Considerations
Despite its allure and potential benefits, investing in art comes with inherent challenges and considerations that investors must carefully navigate:
-
Lack of Liquidity: Art investments are relatively illiquid compared to traditional financial assets. Selling an artwork can be a time-consuming process involving auctions, private sales, and negotiations, potentially leading to delays in accessing capital or realizing returns.
-
Subjectivity and Volatility: The subjective nature of art valuation can result in price volatility and fluctuations influenced by trends, tastes, and market sentiment. Investors must be prepared for price variations and the inherent risks associated with market dynamics.
-
Expertise and Due Diligence: Investing in art requires expertise, research, and due diligence to assess the authenticity, provenance, condition, and market potential of artworks. Engaging with art advisors, appraisers, and specialists can help investors make informed decisions and navigate the complexities of the art market.
-
Storage and Maintenance Costs: Owning art entails costs related to storage, insurance, conservation, and maintenance to preserve the quality and value of artworks. These additional expenses should be factored into the overall investment strategy and budgeting considerations.
Understanding Art Valuation
Valuing art is both an art and a science, requiring a deep understanding of the factors that contribute to an artwork's worth. While financial metrics such as price-earnings ratios or net asset values are common in traditional asset classes, valuing art involves a more nuanced approach that takes into account subjective criteria as well as market trends.
One of the primary methods used to value art is through comparative analysis, where similar artworks by the same artist or within the same genre are used as benchmarks. Factors such as the artist's reputation, the artwork's condition, its provenance, and historical sales data all play a role in determining its value. Additionally, the expertise of art appraisers, dealers, and auction houses can provide valuable insights into the market value of a piece.
Shares in Art
Shares in art, also known as fractional ownership or art investment funds, allow multiple investors to collectively own a share of a valuable artwork or art collection. This concept is gaining popularity as it provides investors with the opportunity to invest in art without having to purchase entire artworks outright. Instead, investors can buy shares or units in an art fund or platform, which then acquires and manages a portfolio of artworks on behalf of the investors. These shares in art offer several potential benefits, including diversification, lower entry costs, access to high-value artworks, and professional management of the art assets.
Tax implications of investing in Art
The tax implications of investing in art can vary depending on factors such as the country of residence, the nature of the investment, and the specific tax laws and regulations in place. Here are some general considerations regarding the tax implications of art investment:
-
Capital Gains Tax: Profits from selling art may be subject to capital gains tax. The rate and treatment of capital gains tax can vary widely between countries and may depend on factors such as the holding period, the type of artwork (e.g., antique, contemporary), and whether the sale is made by an individual or a business entity.
-
Sales Tax or VAT: In some jurisdictions, the sale of art may be subject to sales tax or value-added tax (VAT). The rate and applicability of sales tax or VAT on art transactions can vary by location and may impact the overall cost and profitability of art investments.
-
Import and Export Duties: When importing or exporting artworks across international borders, investors may encounter customs duties, tariffs, or import/export taxes. These duties can vary based on the value, origin, and classification of the artwork and should be considered when engaging in cross-border art transactions.
-
Gift and Estate Taxes: Transferring art as a gift or as part of an estate can trigger gift taxes or estate taxes in certain jurisdictions. The valuation of the artwork and the relationship between the donor/estate and the recipient can impact the tax treatment of such transfers.
-
Tax Deductions for Donations: Donating art to qualified charitable organizations or museums may result in tax deductions in some countries. However, the eligibility criteria, valuation requirements, and limits for tax-deductible donations can vary, and investors should consult with tax advisors or legal experts to understand the implications of art donations.
-
Art Investment Funds and Structures: Investing in art through funds, partnerships, or structured investment vehicles may have specific tax considerations. Investors should review the tax implications of different investment structures, including pass-through taxation, withholding taxes, and reporting requirements.
-
Tax Reporting and Compliance: Art investors are generally required to comply with tax reporting obligations, including disclosing art transactions, capital gains, losses, and other relevant information on tax returns. Failure to comply with tax laws and reporting requirements can result in penalties or legal consequences.
-
Tax Treaties and International Considerations: For investors engaged in cross-border art transactions or investing in art across different jurisdictions, tax treaties, double taxation agreements, and international tax regulations may impact the taxation of art investments. Understanding the implications of international tax laws is crucial for managing tax liabilities and optimizing investment outcomes.
Strategies for Art Investment
Successful art investment strategies often involve a blend of research, diversification, risk management, and long-term perspective. Some key strategies and best practices include:
-
Research and Education: Develop a deep understanding of art history, movements, artists, market trends, and valuation methodologies. Continuous learning and research empower investors to make informed decisions and identify promising opportunities.
-
Diversification: Diversify art investments across different genres, periods, artists, and mediums to spread risk and capture diverse market opportunities. Balancing established artists with emerging talents and exploring various art categories can enhance portfolio resilience and potential returns.
-
Long-Term Perspective: Adopt a long-term investment horizon when investing in art, recognizing that value appreciation may occur gradually over years or decades. Avoid short-term speculation or overemphasis on market timing, focusing instead on the intrinsic quality and potential of artworks.
-
Professional Guidance: Seek advice from art advisors, appraisers, galleries, and auction houses with expertise in the art market. Collaborating with professionals can provide valuable insights, access to exclusive opportunities, and assistance in navigating complex transactions.
-
Risk Management: Implement risk management strategies such as insurance coverage, due diligence on authenticity and provenance, and careful consideration of market conditions. Be prepared for market fluctuations and maintain a diversified portfolio to mitigate potential losses.
Case Studies and Success Stories
Several notable case studies and success stories highlight the potential of art investment as a rewarding and profitable venture:
-
The Peggy and David Rockefeller Collection: In 2018, the auction of the Rockefeller collection at Christie's generated over $800 million, setting numerous records and showcasing the enduring value of prestigious art collections assembled over decades.
-
Basquiat's Market Surge: The market for Jean-Michel Basquiat's artworks experienced a significant surge in value, with several pieces fetching tens of millions at auctions. Basquiat's rise from a street artist to a global icon illustrates the potential for value appreciation in contemporary art.
-
Blue-Chip Artists' Resilience: Blue-chip artists such as Pablo Picasso, Andy Warhol, and Claude Monet have demonstrated resilience and enduring value in the art market. Their works continue to command premium prices and maintain strong demand, reflecting the stability of established artistic legacies.
Final Words
Investing in art represents a compelling opportunity for individuals, collectors, and investors seeking to diversify portfolios, engage with culture, and potentially achieve significant returns. While the art market offers unique advantages such as aesthetic enjoyment, cultural enrichment, and non-correlated assets, it also presents challenges related to valuation, liquidity, and market dynamics. Conducting thorough research, understanding the terms and conditions of the art investment, and seeking advice from art and legal experts, financial advisors can help investors make informed decisions.
In this article by Academic Block we have learned that Art investment requires a blend of passion, expertise, and prudent decision-making, making it a rewarding journey for those intrigued by the intersection of creativity and finance. As the art market continues to evolve and adapt to global trends, innovative technologies, and shifting preferences, art investment remains a dynamic and captivating venture that bridges the realms of culture, commerce, and creativity. Please provide your comments below, it will help us in improving this article. Thanks for reading!
This Article will answer your questions like:
Investing in artwork involves purchasing pieces with the potential to appreciate in value. This can be done through galleries, art auctions, or online platforms. Investors may seek professional advice from art consultants or leverage online resources to gain insights into trends and market movements. Art funds and fractional ownership are alternative routes for diversifying art investments. Understanding market cycles and cultural shifts is crucial for successful art investment.
Art can be a viable investment for portfolio diversification, offering an alternative asset class with potential for high returns. However, it is also a long-term, illiquid investment with significant risks, such as market volatility and difficulties in valuation. Art investments often yield non-financial returns, like personal satisfaction and prestige. Careful selection, expert advice, and understanding the art market's nuances are essential for informed decisions.
Starting with art investment requires research and education on the market. Novice investors should visit galleries, attend auctions, and explore online art platforms to understand the pricing, trends, and demand for certain artists or styles. Consulting with art advisors or curators is beneficial, especially for high-value purchases. Fractional ownership or investing in art funds can be easier, lower-cost entry points for beginners.
Risks in art investment include illiquidity, high transaction costs, and the potential for misjudging the value of artworks. Art is a speculative investment with price volatility, influenced by market trends, economic conditions, and cultural factors. Provenance issues, forgery, and fluctuating demand for certain artists add additional risks. Long-term commitment and a thorough understanding of the market are crucial to mitigating these risks.
Investing in fine art typically involves purchasing original works from reputable galleries, auctions, or private collections. Investors should conduct thorough due diligence on the artist's history, artwork provenance, and market value. Fine art investment funds and online platforms offering fractional ownership are alternative methods for those seeking to invest without buying physical art. Engaging with industry experts and maintaining a long-term perspective is key to fine art investment success.
Valuing art involves assessing factors like the artist’s reputation, the work’s historical significance, condition, and provenance. Market demand for specific artists or periods also plays a key role. Art appraisals by certified professionals provide an official valuation, but market trends and subjective cultural factors must be considered. Auction results, gallery sales data, and comparisons with similar works are used to determine investment value in the art market.
The best art investment strategies focus on diversification across different artists, styles, and periods to spread risk. Long-term investments in established artists tend to be safer, while speculative investments in emerging artists may offer higher returns but carry more risk. Understanding market cycles, attending key auctions, and building relationships with dealers or galleries can provide a competitive advantage. Patience and thorough research are key to successful art investment strategies.
Investing in paintings can be worth it, especially for investors who understand the art market and have a long-term perspective. While paintings, especially from renowned artists, can significantly appreciate, returns are uncertain and market-driven. Illiquidity and high transaction costs should be considered. For those passionate about art, the non-monetary enjoyment and cultural significance can add value beyond financial returns, but financial gains are never guaranteed.
Art investments are subject to capital gains taxes, which can be higher than for other asset classes, depending on the jurisdiction. In the U.S., for example, art is classified as a collectible, and gains are taxed at a higher rate. Donations to museums or art institutions can offer tax deductions. It's crucial for investors to consult with tax professionals to understand the tax implications specific to their situation and jurisdiction.
Buying shares in art can be done through platforms offering fractional ownership, where investors purchase a portion of an artwork rather than the entire piece. These platforms make art investment accessible by dividing high-value artworks into smaller shares, allowing investors to diversify across different artists and pieces. Art funds also allow investors to pool resources into professionally managed portfolios. Such options make art investments more flexible and accessible.
Authenticating art before investing is crucial to avoid buying forgeries. Investors should seek documentation of provenance and request a certificate of authenticity from the seller. Independent art appraisers and authentication experts can verify the piece's legitimacy. Auction houses and reputable galleries usually conduct thorough due diligence. Researching the artist and obtaining third-party evaluations are additional steps to ensure authenticity before making significant financial commitments.
An art investor buys and holds artworks or shares in art, seeking appreciation in value over time. Art investors must research market trends, track the performance of individual artists, and strategically buy and sell based on market conditions. They may work with galleries, auction houses, or private collectors to identify valuable pieces. Networking, cultural insight, and an understanding of the historical significance of art are essential for successful art investment.
Current trends in the art investment market include increased interest in contemporary and digital art, such as NFTs. There’s also a rising demand for works by underrepresented artists, particularly women and artists of color. Fractional ownership platforms are making high-value art more accessible to a broader range of investors. Additionally, online auctions and digital art marketplaces are transforming the traditional methods of buying and selling art.
Famous Art auction galleries
Christie’s : Renowned auction house offering a wide range of fine art, antiques, and collectibles, based in the United Kingdom.
Sotheby’s : Prestigious international auction house specializing in art, jewelry, and luxury goods, headquartered in the United States.
Phillips : Contemporary art-focused auction house known for its modern art auctions, operating from the United Kingdom.
Bonhams : Auction house specializing in fine art, antiques, and motorcars, with headquarters in the United Kingdom.
Artcurial : French auction house renowned for its auctions of fine art, vintage cars, and luxury items, located in France.
Dorotheum : One of the oldest auction houses in the world, based in Austria and specializing in art, jewelry, and antiques.
Koller Auctions : Swiss auction house known for its auctions of fine art, watches, and decorative arts, operating from Switzerland.
Heritage Auctions : Major auction house in the United States, offering a diverse range of collectibles, art, and memorabilia.
Fraud & Forgery cases linked with Art
Han van Meegeren’s Vermeer Forgeries: Dutch artist Han van Meegeren is perhaps one of the most famous forgers in art history. In the 1930s and 1940s, he created a series of forgeries imitating the style of Dutch master Johannes Vermeer. Van Meegeren’s forgeries, including “The Supper at Emmaus,” were so convincing that they fooled art experts and collectors, including Nazi leader Hermann Göring. The discovery of van Meegeren’s forgeries led to his arrest and trial, during which he confessed to his forgeries but claimed he did it to expose the gullibility of art critics and collectors.
Elmyr de Hory’s Impressionist Forgeries: Hungarian-born artist Elmyr de Hory gained notoriety for his skillful forgeries of works by renowned artists such as Pablo Picasso, Henri Matisse, and Amedeo Modigliani. De Hory’s forgeries were so convincing that they were sold and displayed in prestigious galleries and collections. His story was later chronicled in the book “Fake!” by Clifford Irving and the documentary film “F for Fake” by Orson Welles.
Wolfgang Beltracchi’s Modern Art Forgeries: German artist Wolfgang Beltracchi and his wife Helene gained attention for their sophisticated forgeries of modern artworks by artists like Max Ernst, Fernand Léger, and Heinrich Campendonk. Beltracchi’s forgeries, created with meticulous attention to detail and aged materials, deceived experts and auction houses for years. The Beltracchis were eventually caught and sentenced to prison for their art fraud scheme.
Knoedler Gallery’s Fake Abstract Expressionist Paintings: The Knoedler Gallery, a prominent New York art dealer, was embroiled in a forgery scandal involving fake Abstract Expressionist paintings attributed to artists like Jackson Pollock, Mark Rothko, and Willem de Kooning. The forgeries, supplied by art dealer Glafira Rosales and created by an unknown artist, were sold to collectors for millions of dollars before the scheme was uncovered, leading to lawsuits and investigations.
Lee Man Fong Forgery Ring: In Indonesia, a forgery ring led by artist Lee Man Fong produced and sold numerous fake paintings attributed to famous Indonesian and Chinese artists, including Raden Saleh and Xu Beihong. The forgeries were sold at auctions and galleries, deceiving buyers and collectors until the ring was exposed, resulting in legal repercussions for those involved.
Major Investments in Art
The Mona Lisa by Leonardo da Vinci: The acquisition of the Mona Lisa by the French government in 1519 marked one of the earliest major investments in art. Today, the painting is housed in the Louvre Museum in Paris and is considered one of the most famous and valuable artworks in the world. The Mona Lisa is considered priceless and is estimated to be worth over $850 million based on its historical significance, artistic value, and cultural impact.
The Peggy and David Rockefeller Collection: As mentioned earlier, the auction of the Rockefeller collection in 2018 at Christie’s was a monumental event in the art market. The collection included works by artists such as Pablo Picasso, Claude Monet, and Henri Matisse, fetching over $800 million, with individual artworks such as “Fillette à la corbeille fleurie” by Pablo Picasso selling for $115 million.
The Salvator Mundi by Leonardo da Vinci: In 2017, the sale of the Salvator Mundi, attributed to Leonardo da Vinci, made headlines as one of the most expensive artworks ever sold at auction. The painting was purchased for approximately $450 million by an anonymous buyer, sparking discussions about art as an investment asset.
The Card Players Series by Paul Cézanne: One of Cézanne’s iconic series, “The Card Players,” has been the subject of major investments and acquisitions. In 2011, the Qatar Museums Authority reportedly purchased one version of the series for around $250 million, highlighting the demand for masterpieces by renowned artists.
Contemporary Art Boom: The surge in demand for contemporary art has led to major investments in works by living artists. Works by contemporary artists such as Jeff Koons and Damien Hirst have sold for tens of millions, with Koons’ “Balloon Dog (Orange)” reaching $58.4 million at auction.
Blue-Chip Artists’ Works: Masterpieces by blue-chip artists like Pablo Picasso, Andy Warhol, and Claude Monet have sold for significant amounts, with Picasso’s “Les Femmes d’Alger (Version ‘O’)” fetching $179.4 million and Warhol’s “Silver Car Crash (Double Disaster)” reaching $105.4 million.
Corporate Art Collections: Many corporations have made major investments in art by building extensive collections that showcase artistic talent and cultural heritage. Companies like UBS, Deutsche Bank, and JPMorgan Chase have curated impressive art collections, fostering a connection between art, business, and creativity.
Risk Involved with Investing in Art
Market Volatility: The art market can be volatile, with prices fluctuating based on trends, tastes, economic conditions, and market sentiment. Art values may experience sharp declines during economic downturns or periods of reduced collector demand, leading to potential losses for investors.
Subjectivity of Valuation: Valuing art is subjective and can vary significantly based on factors such as artistic merit, provenance, condition, historical significance, and market demand. The subjective nature of valuation can lead to discrepancies in price expectations and uncertainty about the true value of artworks.
Illiquidity: Art investments are relatively illiquid compared to traditional financial assets like stocks or bonds. Selling an artwork can be time-consuming and may involve auctions, private sales, or negotiations, limiting the ability to access capital quickly or in times of need.
Authenticity and Provenance: There are risks associated with the authenticity and provenance of artworks. Investing in counterfeit or misrepresented artworks can result in financial losses and legal challenges. Conducting thorough due diligence on the authenticity and provenance of artworks is crucial to mitigate these risks.
Condition and Conservation: The condition of artworks is essential to their value and long-term preservation. Artworks can deteriorate over time due to factors such as age, handling, environmental conditions, and improper storage. Maintenance, conservation, and insurance costs should be factored into the overall investment strategy.
Market Trends and Fads: The art market is influenced by trends, fads, and changing collector preferences. Investing based solely on current trends or hype can lead to speculative behavior and potential overvaluation of certain artworks. It’s essential to conduct research and avoid following market trends blindly.
Lack of Transparency: The art market has historically been less transparent compared to traditional financial markets. Limited information, opaque pricing, and undisclosed transactions can pose challenges for investors in assessing market dynamics and making informed decisions.
Expertise and Knowledge: Successful art investment requires expertise, knowledge, and understanding of art history, market trends, valuation methodologies, and artist profiles. Lack of expertise or relying solely on external advice without conducting independent research can increase investment risks.
Regulatory and Legal Risks: Art investments are subject to regulatory and legal risks, including taxation, import/export regulations, ownership disputes, copyright issues, and cultural heritage protection laws. Investors should be aware of legal obligations and seek professional advice to navigate regulatory complexities.
Market Accessibility: Access to certain segments of the art market, such as high-profile auctions or exclusive galleries, may be limited to a select group of collectors or investors. This lack of market accessibility can impact the availability of investment opportunities and potentially limit portfolio diversification.
Facts on Investing in Art
Historical Performance: Over the long term, art investments have shown the potential for capital appreciation. According to indices like the Mei Moses All Art Index, which tracks the value of art sold at auctions, art has outperformed traditional asset classes like stocks and bonds in certain periods.
Diversification Benefits: Art investments offer diversification benefits by having a low correlation with traditional financial markets. During economic downturns or market volatility, art prices may remain stable or even appreciate, providing a hedge against broader market fluctuations.
Subjectivity of Valuation: The value of art is subjective and influenced by factors such as artistic merit, provenance, condition, historical significance, and market demand. This subjectivity can lead to price volatility and fluctuations based on trends, tastes, and collector preferences.
Illiquidity: Art investments are relatively illiquid compared to stocks, bonds, or other financial instruments. Selling an artwork can take time and may involve auctions, private sales, or negotiations, which can impact liquidity and the ability to access capital quickly.
Expertise and Due Diligence: Successful art investment requires expertise, research, and due diligence. Investors need to understand art history, market trends, valuation methodologies, and engage with art advisors, appraisers, and specialists to make informed decisions.
Storage and Maintenance Costs: Owning art entails additional costs such as storage, insurance, conservation, and maintenance to preserve the quality and value of artworks. These costs should be factored into the overall investment strategy and budgeting considerations.
Emerging Markets and Trends: The art market is not static and evolves with emerging artists, art movements, and global trends. Investors need to stay informed about developments in the art world, including shifts in market demand, collector preferences, and emerging opportunities.
Risk Management: Art investors should implement risk management strategies such as insurance coverage, due diligence on authenticity and provenance, and careful consideration of market conditions. Diversifying art investments across different genres, periods, and artists can also mitigate risks.
Long-Term Perspective: Art investment typically requires a long-term perspective, as value appreciation may occur gradually over years or decades. Avoiding short-term speculation and focusing on the intrinsic quality and potential of artworks can lead to more successful outcomes.
Cultural and Social Value: Investing in art goes beyond financial considerations, as it contributes to cultural preservation, artistic innovation, and the support of artists and creative communities. Many investors value art for its cultural and social significance, in addition to its investment potential.
Academic References on Investing in Art
Books:
- Bhandari, A. (2014). Art investing: A guide to the global art market. Wiley.
- Dorment, R. (2011). The art of the steal: Inside the Sotheby’s-Christie’s auction house scandal. Random House.
- Hirsch, L. (2016). Art market economics: A comprehensive guide to understanding art markets and pricing. John Wiley & Sons.
- McAndrew, C. (2014). Fine art and high finance: Expert advice on the economics of ownership. Bloomberg Press.
- Moses, M. L., & Moses, J. M. (2002). How to buy art: Secrets to successful art collecting. St. Martin’s Griffin.
- Naves, M. (2016). The twilight of the avant-garde: Spanish poetry 1980-2000. Princeton University Press.
- Velthuis, O. (2005). Talking prices: Symbolic meanings of prices on the market for contemporary art. Princeton University Press.
- Leckie, R. (2015). Collecting art for love, money and more. Allworth Press.
- Serota, N. (2014). How to start and run a commercial art gallery. Routledge.
- Thornton, S. (2008). Seven days in the art world. WW Norton & Company.
Journal Articles:
- Frey, B. S., & Eichenberger, R. (2000). Art Fakes—What Fakes? An Economic View. Journal of Economic Perspectives, 14(3), 215-226.
- Ginsburgh, V. A., & Jeanfils, P. (2005). Long-term and short-term behavior on the art market. Journal of Cultural Economics, 29(4), 351-358.
- Mei, J., & Moses, M. (2002). Art as an investment and the underperformance of masterpieces. American Economic Review, 92(5), 1656-1668.
- Ravesi, R. (2008). The art market in Italy and the USA: A comparative analysis of prices. Journal of Cultural Economics, 32(1), 59-75.
- Renneboog, L., & Spaenjers, C. (2012). Buying beauty: On prices and returns in the art market. Management Science, 58(1), 36-53.
- Siler, T. (2017). The Fine Art of Art Investing: A Review. Journal of Investing, 26(3), 32-42.
- Thompson, A., & Williams, C. (2009). Visual art as an investment: An empirical study of risk and return. Journal of Financial Economics, 95(2), 246-262.
- Tullock, G. (1992). Auctions and art investment. Eastern Economic Journal, 18(4), 439-444.
- Velthuis, O. (2003). Symbolic meanings of prices: Constructing the value of contemporary art in Amsterdam and New York galleries. Theory and Society, 32(2), 181-215.
- Verbeek, M. (2007). The return of the beautiful corpse: The ruthless economy of art investment in contemporary art. Theory, Culture & Society, 24(6), 1-23.