The pandemic had many consequences for a lot of us but there was one silver lining we got to see. We could understand the benefit of art as an ideal form of investment. Having spent two years in economic uncertainty, we were hesitant to invest in the traditional asset classes like stocks and real estate but we did start to look at art as an asset that helps with diversification.
Art investment has the potential to generate returns as high as 7% and it remains unaffected by the volatility of the market, which makes it a highly stable form of investment. All the latest trends in the art market are consumer-driven and there are auction houses, collectors, and galleries that shape art investment as the next big thing. Before you decide to invest in art, you must consider the costs associated with it. There is the cost of art shipping and storage and if you fail to account for this, the cost of investment will become higher than you budgeted for. With more and more individuals buying art than ever before, the digital art transformation is here and it has led to several trends in the industry including the rise in demand of art shipping services. Here are some of the top art investment trends for 2022.
An important aspect of the art industry, street art is still evolving and very young. It dates back to the early 60s but has become a big part of the social and political commentary. It appeals to young investors and some of the biggest names in the street art movement tend to fetch high prices at the auction houses as there is a regular demand for their work in the public and private markets. There are many pieces that will be out of reach for collectors but you will also find many notable artists whose work can be purchased through auction houses. You can enjoy diversification with street art and if you purchase from the right place at the right time, there is a chance to make the most of the opportunity before the prices start to soar.
Collaborations and Inspirations
Those who want to take art investment seriously need to engage in the world of art through publications and events. You should keep a lookout for what the other artists are collecting and what art investors are conversing about. It will give you an idea of the movements, areas, or artists that are worth investing in. When you invest in different styles or different artists, you can achieve diversification. Keep a watch on what similar artists or investors are focusing on. The art industry is only going to expand in the coming years and we will get to see a lot of collaboration between artists and fashion designers which showcases how art is being perceived today. The collaborations can open up new investment opportunities and allow you to get a hold of some of the most unique art pieces.
Buying from blue-chip artists is not possible for all, especially if you are new to the art investment industry and starting to build a portfolio of art. Collectibles are limited edition prints which is a good way to start the journey as an investor and it has grown in popularity for those with a modest budget. There is a whole new generation of collectors who are trying to get hold of the art pieces within their budget. Collectibles are much more affordable and an ideal alternative to get access to the promising artists without having to pay for the high price tag for their work. It will allow you to hold good investment within the budget and as the reputation of the artists starts to grow, the value of the collectible will also increase.
You will notice that the limited edition prints are much cheaper in terms of maintenance perspective. This makes it a comfortable investment for those who are only starting and they also do not have the heavy cost of maintenance and restoration which may result in the depreciation of original work.
This is a great time to invest in art and the industry is only going to expand in 2022. The trends will certainly come and go but if you want to be a part of the art world, you must keep an eye out on what the community and artists are talking about. This will help spot the profitable developments in the market and you will be able to make the right investment decisions keeping your goals and budget in mind. It helps to hold the investment for a few years in order to make the most of it. You cannot expect it to grow overnight but it will certainly grow in the long-term.