In many cases the purchase of art is done on works by artists who haven’t yet reached their maximum consecration, which implies that supply and demand is constantly evolving and we can not extract accurate data. During this period, buying its works is a lottery, which in a way introduces a sense of danger that usually attracts investors. Either way, it always pays to understand, later on, that the profitability of your work of art acquired at a reasonable price in the beginnings of an artist has obtained a great profitability.
The sale of art is greater in contemporary strata, in part because the works of the great masters already consecrated, from the nineteenth century and backward, come at prices that currently most collectors do not want to assume. In addition, the profitability that are demonstrating the artists of the XX and XXI century is high, which compensates the risk as a rule.
In financial markets there is always a certain instability, which affects your assets depending on the timing and type of asset that we are talking about. In this case, speaking of the art market, we must take into account that almost by inertia it is considered that the collectors belong to a group of art lovers with the economic capacity to acquire these works. The only thing that is discussed, even today, is its profitability.
In many cases the high price of works of art is directly related to their presence and their profitability. What is not usually taken into account is that more than 90% of the artistic works sold in auctions during the year 2016 were less than € 50,000: data extracted from TEFAF Art Market Report. Not all collectors have large fortunes, and in many cases we can find young people who start their collections modestly, or people who, while maintaining an average standard of living, save for one or another work.
Not only do we have the TEFAF report. Artprice has also presented a report on the year 2016, which talks about the evolution of prices in art. In this report we have data as conclusive and important as the growth of 1370% of contemporary art since 2000, which is intimately and directly related to the fact that 95% of collectors end up shopping on the internet, comfortably. Spanish auction houses, fortunately, are masterfully joining this new online selling arrangement. While the world still suffers from the crisis born in 2007, trying to take refuge in antiquated assets and lacking in value, the art world improves and helps in profitability, as can be seen in our collections Consolidated Values and Modern Masters.
This way of considering the world of art almost as a refuge is not recent: it has been for almost 18 years, years in which art has continued to maintain and improve its value and profitability, raising new names and attracting new investors, leaving behind crises that have barely touched their economy. In proportion, the average value of a work increases by 115%, while annual profitability is 4.9%, at low prices. From € 20,000 worth, we find that it rises to 9%, according to Artprice.