Is contemporary art a good investment in 2023? Before you jump in, it is crucial to understand the inner workings of this complex and exciting market. Discover the keys to…
Contemporary art fascinates as much as it divides. Some see it as a speculative bubble, while others see it as a wise investment to diversify their assets. So, should we invest in contemporary art in 2023? Here are some answers.
Blue chips, the market’s safe bets
Contemporary art “blue chips” like Jean-Michel Basquiat or Jeff Koons are often a reassuring first choice for investors. Their ratings continue to climb, driven by a constantly increasing global demand.
In May 2021, Basquiat’s painting “In This Case” acquired for $1 million in 2002 was resold for $93,1 million, a capital gain of 9% in 000 years.
– According to a source close to the art market
These spectacular returns should not, however, make us forget that even blue chips are not immune to a reversal of the trend. Caution remains the order of the day.
Betting on emerging artists: a risky but stimulating bet
For those willing to take more risks, betting on promising young artists can be rewarding, both financially and emotionally. It’s the thrill of discovering a talent before others, with the hope of seeing its rating soar.
However, spotting future stars requires a great deal of knowledge of the industry and a bit of luck. Many are called, few are chosen:
- Follow the latest news from galleries, fairs, biennials
- Exchange with knowledgeable professionals and collectors
- Make up your own mind by visiting workshops and exhibitions
Contemporary art: an opaque and volatile market
Despite regularly breaking records at auction, the contemporary art market remains nebulous and unpredictable. Unlike financial markets, it is not regulated and seriously lacks transparency on price formation.
In addition, liquidity can quickly become a problem. It is not always easy to resell a work at the desired price, especially in times of crisis. Costs (insurance, conservation, etc.) and taxation must also be taken into account.
Art for art’s sake above all
Finally, investing in contemporary art should only be conceived through passion. It would be a shame to miss out on the pleasure of living daily with a work that moves you, in the hypothetical hope of added value.
If you decide to get started, start small, diversifying artists and techniques (painting, sculpture, photography, installation, etc.). Keep in mind that a contemporary art collection is shaped over time, according to passions, encounters and opportunities.
So, are you ready to take the plunge? One thing is for sure, emotion will be there, whether your choice is an established value or a hope for tomorrow. Because that is the essence of contemporary art: shaking up our certainties and sharpening our view of the world.