An individuals' motivations for purchasing works of art range widely. Considering the ongoing upheaval in the stock market, the benefits of owning art go beyond simply decorating the interior of a building; it encourages us to take a fresh perspective on the world around us and exposes us to a wider range of colour palettes, ethnicities, and traditions. Purchasing artwork not only stimulates the economy but also provides direct financial assistance to artists, which enables them to maintain their creative output and, as a result, maintains and improves the overall quality of their life. There is no experience quite like that of purchasing a piece of art from an artist whose work you admire while also showing your support for that artist.
One could reasonably wonder if artwork makes for a sound financial investment.
We've all wanted to be able to afford a piece of art that really speaks to us, but the widespread belief that only a select few people with large disposable incomes can afford works of art has kept most of us from realising this ambition.
However, such rhetorical devices belong to the past; they are not current principles. It doesn't matter if you're an experienced collector or a complete art newbie with a burning desire to buy artwork, it is always a great addition to a growing investment portfolio.
If you are a true art lover who enjoys going to galleries in person, where the halls stretch beyond the imagination and create a winding passageway of artistic bliss with masterpieces catching your eye with that instantaneous love-at-first sight feeling, then you should know that investing in art has historically yielded excellent returns. Spending your money on only those things that make you feel a strong emotional connection to the want to own because of your unique perspective and values. Investing in a work of art is a way to leave behind the mundane and enter the zen state of mind experienced by the artist.
In recent years, affordable street artists such as 'D-Wizz,' and the infamous 'Jakob,' as seen in our Featured Artists, have emerged from the shadow of their forefathers such as the ever-famous Richard Hambleton and Basquiat, who have dominated the traditional art trade up until now.
Maybe you're a conscientious costumer who wants to ensure the financial well-being of their loved ones and is interested in passing on their money to the next generation. The more observant collector understands that the value of art lies not only in its ability to stir emotional responses but also in the great financial returns it may bring in years to come. In a staggering global market worth $1.7 trillion, the undeniable financial advantage art has had and continues to have, quickly overtaking traditional asset classes, is plain to see.
You might be wondering, how risky is it to put money into art. At LAX, we provide you with investment options that have the fewest possible risks attached to them so that you may make confident financial decisions.
Art really can withstand the test of time; the longer it is in your possession, the greater the gain will be. This is one reason why purchasing art has such a great appeal to those who wish to extend their legacy and to leave generational wealth behind for their loved ones or perhaps donate to their favourite charities; whatever individual motivation you may have, there is assured safety when investing in art.
There is a demonstrated profit margin for investing, which further bolsters the financial security of the investment. Art is a part of the family of SWAG assets which stands for silver, wine, art, and gold. These are lucrative assets that are all ideal investment alternatives due to their increase in overall worth once purchased. This increase in value serves as an additional safety net because these investments also act as a hedge against inflation.
In addition to this, there is an extra layer of safety involved when acquiring an NFT using bitcoin because doing so indicates ownership, which removes the possibility of any future losses.
Art as an investment is progressively becoming the key financial venture in the face of economic uncertainty. When we compare art to other tangible asset classes its supremacy proves sovereign. The Art market has seen not only consistent growth but continual development as each year it has increased in value over the last 20 years.
With all that is going on its clear that there has been a general increase in popularity for the arts, with more and more people interested it also increases the appeal for the prospects of investment opportunities. The current Global Art market value is $65.1bn with contemporary art scene taking the lead and holding the flaming baton, with 102,000 pieces of work sold at auction over the last 12 month period generating a total of $2.7bn and is up by 117%.
It is fair to say that this has not always been the case, but over the past few years, with the upsurge of NFT's crypto art and digital art, it has become the industry's redeemable token. Additionally, 54% of millennial art buyers reported that their interest in purchasing art online had increased since the pandemic, coinciding with the shift to virtual art sales taking over.
The most important thing to learn from monitoring the art market is how to make it work to your advantage, and regardless of the circumstances, it has been demonstrated that there is a benefit in keeping items for longer periods of time to improve the value of the works and their returns.
If you are the buyer looking at modern wall art for living rooms or masterpieces to hang up in your office, then once you take the leap in buying art, there needs to be strategies in place for your fruitful exit.
Owning a piece of blue-chip art is comparable to having a bond with a AAA rating, which indicates that the investment is not only a good bet for your money but also has a remarkable capacity to meet its financial obligations. To ensure that all our art collectors have a path to exit when they decide to liquidate their holdings, our team is comprised of a vast array of talent, including strategists, analysts, curators, buyers, sellers, and most importantly, a large client base of both old and new art investors.
