The Art market is considered a “refuge value” and a safe investment alternative, particularly during times of economic crisis. With low profitability offered by traditional savings formulas, investing in art has attracted more people as it provides better returns. According to experts, sales and prices of art fall to a lesser extent than other assets during a recession, and the art market is consolidating, recovering the figures from 2008.
The trend has been observed in the online sales sector, where the turnover tripled in 2020. Online sales have become popular, allowing buyers to purchase and sell art without the need to see the works in person. Art prices are not subject to as much volatility and uncertainty as other investments, and they tend to increase in value by at least 5% at the time of acquisition. However, seeking advice is recommended to ensure both investment insurance and profitability.
The sector of galleries has suffered due to the pandemic, and the auctions have been moved online, where they sell to everyone. Countries like the US, France, and the UK generate a lot of movement in the art market. Consuelo Durán, a specialist in the field, says that despite the myth of the art market moving due to the antiquity of works, there are current artists more valued than those from the 19th century. Taste and preferences have been changing, and collectors now have different preferences.
Auctions are the best trend thermometer to observe the changing preferences of collectors. Durán says that some painters stop having interest, and the School of Paris that was being sold at exorbitant prices is no longer in demand. The client is either older or no longer there, and young people who come to the world of art see other more current things in galleries, museums, or other media.
In conclusion, investing in art during times of crisis could be a wise decision as it provides better returns than traditional savings formulas. The art market has been consolidating and recovering from the previous recession, with online sales becoming more popular. Taste and preferences have been changing, and collectors now have different preferences, observed through auctions. Seeking advice is recommended to ensure investment insurance and profitability.