Collecting and investing in art

Collecting and investing in art

People have always invested in stocks, gold, real estate, and other inanimate objects. However, investing in art can be much more pleasant and profitable for you. But it is very important to understand how to do it correctly.

At first glance, it may seem to some that such investments carry a lot of risks and challenges, since the very concept of artistic value is an extremely subjective thing. However, if you delve more deeply into the deep world of the art market, it becomes clear that the light of knowledge will illuminate the path to particularly profitable investments. Our task is to help you do it here and now. Online.

No one can predict now what exactly the events of 2020 will turn out to be in the art market. Our world was constantly undergoing economic collapses. As you know, after the darkest time comes the dawn. Let's analyze with the help of statistics from the past, which strategy should be used by the collector in a crisis.

In a crisis, the best works are sold as well as before it

According to Tim Schneider, who has studied Economics and art prices in pre - and post-crisis eras, a downturn in the market can still be a good time to sell a masterpiece. The top end of the market has proved surprisingly resilient, and when an exceptional, unique work goes to auction, it can still attract live bidding, regardless of economic circumstances. Even in 2009, when global markets were at their worst after the great recession, auction houses still produced astounding results. One of the most memorable - and ironic - was the case when a painting by Andy Warhol "$ 200" with an eistimet of $ 12 million sold for as much as $ 43.8 million in new York at Sotheby's in November 2009.

Buy for cheap - sell for expensive

In times of great uncertainty, many people cut back on spending to save money for a rainy day, which means that money to buy art runs out among the first. But for those who are able to continue collecting art, there are many potential advantages.

First of all, remember that buying art, you support the existence of the entire industry as a whole

First of all, buying art supports the entire art world. Whether it's primary sales (the proceeds of which go partly directly to artists) or purchases on the secondary market, this is a very real way to ensure the survival of the people and businesses that make up the art industry.

There is also an unavoidable thing where buyers are often advised to buy at a low price. A successful new York gallerist from Chelsea researched the 2008 financial crisis and gave advice for future collectors of the crisis era: "What do smart people do? They buy a lot of art, " he explained. "The people who really make money were the ones who bought works at auction, where works were sold at 35-45% below market value."*

Social distance is the new norm

Keep track of price changes and auctions online. This will help you analyze the economic situation in the art field.

"Digital generation" and "zoomers" are already shifting the mastodons of the collectibles market. It is important for these people to communicate with their partners in a common language.

Don't be afraid to go online. In the foreseeable future, we will see a complete transition of trades and transactions to online.And this is quite OK. And even in the past, many transactions were conducted without the presence of participants in person.

On March 26, Sotheby's completed its online auction dedicated to the work of the famous anonymous street artist Banksy-and it was a runaway success. In total, the auction brought in $ 1.4 million, which significantly exceeded the pre-sale estimate. More than 85% of lots exceeded their upper estimate. Perhaps the most significant was that almost half of the works went into the hands of novice collectors.

On the TEO platform, you will find works specially selected by professional curators and art historians. These collections will add to your collection of current art and help bring you income from investments in a timely manner.