An appealing choice for investors looking to diversify investment portfolios
Citigroup, a leading global investment bank, has reported that the long- term value of art is rising, offering returns on investment in line with bonds. Citigroup’s analysis shows that contemporary art returns an average of 7.5% per year, whereas Impressionist art (originating in the late 19th century to early 20th century) returns an annual average of 5%[1].
Investing in artworks can yield strong returns on investment, provide aesthetic pleasure, and enable you to support new talent. In some cases, an investment of around £1,000 has turned into nearly £10 million over 25 years (consider Banksy’s work).
Emerging artists to watch
Art that tackles issues such as global warming is particularly popular. Eco- art, which explores sustainability and ethics, is also gaining traction. Using recycled cardboard, UK-based artist Josh Gluckstein creates life-size figures of some of the world’s most trafficked animals – elephants, pangolins, and tigers. His savvy use of social media has made him an internet sensation, highly collectable, and a refreshing departure from the digital and conceptual art that has dominated the contemporary art world for decades. His works currently sell for around £2,750 to £9,000[2].
According to the online publication ‘The Collector,’ one painter to watch in 2024 is George Rouy. His work depicts dreamy, fleeting abstract figures reminiscent of iconic British artist Francis Bacon, yet Rouy’s work is softer and more sensual. Phillips auction house has sold several of his works for prices ranging from £7,000 to £70,000[3].
Power of social media
If artwork appears on the cover of music albums or the artist has a strong social media following on TikTokand Instagram, they could be worth watching. Richard Ikhide, a Nigerian-born British artist whose colourful paintings lean towards soft psychedelia and reference Japanese manga, video games, and West African culture, is considered by some to be a valuable investment. His online exhibition at the high-profile Victoria Miro Gallery sold out in one hour. Generally, if there’s a buzz around an artist, it is worth exploring their work further.
Jean-Michel Basquiat, whose short career saw him start as a graffiti artist, sold his first painting to pop icon Debbie Harry in 1981. Debbie Harry purchased the painting titled “Cadillac Moon” for $2004. Although the exact worth of this iconic piece is not public, other similar paintings in media and size are now worth over $10 million[4].
The rapid rise of Banksy
As previously mentioned, Banksy is increasingly becoming one of the world’s most famous contemporary artists, but despite his global following, his identity remains unknown. Often described as “elusive” and “secretive” by the press, the “guerrilla street artist” counts A-list celebrities, such as actor Brad Pitt, among his fans and collectors.
A hero to some and a vandal to others, his artworks sell for eye-watering sums. At the start of Banksy’s career in the late 1990s and early 2000s, you could buy one of his stencil art paintings for around £500. Today, his paintings sell for millions, with his canvas “Love is in the Air” which sold at auction in 2021 for £9.2 million, paid for with Bitcoin[5].
Insuring contemporary art
Enlisting the services of a contemporary art valuer and a specialist insurance broker can be invaluable for protecting your assets. Given the financial investments involved in acquiring and owning contemporary art, specialist insurance provides you with peace of mind and financial protection against unforeseen events that could jeopardise the value and integrity of your art collection.
Additionally, understanding the intricacies of art valuation and insurance is essential in today’s market. Professional advice ensures that your investments are safeguarded and potential risks are mitigated. These steps allow you to enjoy your art collection’s aesthetic and financial rewards without undue concern.
Discover art investment opportunities with Zurani Advisory
For comprehensive insights and personalised guidance on incorporating art into your wealth management strategy, contact our expert team at Zurani Advisory. Explore the unique advantages of art investment with our seasoned professionals. Contact us today at contact@zurani.com or call us at +971 58 593 5523.
Source data:
[1] https://www.cnbc.com/2019/12/07/art-has-shown- long-term-returns-that-rival-bonds.html
[2] https://www.artsy.net/artist/josh-gluckstein
[3] https://www.phillips.com/artist/23127/george-rouy [4] https://en.wikipedia.org/wiki/List_of_paintings_by_ Jean-Michel_Basquiat
[5] https://www.myartbroker.com/artist-banksy/ record-prices/banksy-record-prices
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