Categories El Valor del Arte, The value of the art

Art as a safe value

According to ArtPrice data at the end of 2015, investment in art produced an average return of 4.5% per year in the last 16 years, representing a cumulative revaluation of 92% of the value of the art.

The return on investment in art is clearly higher than that of the stock market since 2000, showing a good example as a safe value in uncertainty phases of the economy, as shown in the chart comparing the evolution of the stock market  S&P 500 index (which represents the 500 most important companies in the USA) with ArtPrice art market index.

For Ana Serratosa, art consultant in the city of Valencia as indicated in the article on her own website “Art is a good investment for both individuals and businesses. It is a good way to diversify investments. Art is a good shelter value, because if it is bought well it is always revalued. Investing in art, in addition to personal aesthetic enjoyment, generates benefits and image for the buyer, economic gains over time if a good purchase is made and also tax benefits”.

It must be taken into account that investing in the art market offers security in the investment and is considered a shelter value when being realized on an artistic good that will always have a purchase price that can be increased or diminished depending on the evolution of the market, but counts at the end with a value. Obviously an investment in art implies an implicit risk in the business itself and depends on the evolution of external factors  to the investor and the professionals given that there are uncontrollable variables such as the competitive value of the artist, the evolution of the local and global economy, anomalous situations like earthquakes or wars, among others.

Therefore, experts in investment operations recommend diversifying the investment in art, that is, investing to the maximum extent the investment capacity of the investor in different collections to distribute the maximum risk of their investment and maximize the chances of success of such investments.

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