Art Capital Group, Advice about Investing in Art

Art is a notoriously volatile market, and an investment could make or break a business or individual. It can prove near impossible to find a willing investor, and the complexities of its unpredictability steers most banks away from any provision of loans for art aficionados. Investments in art are also unregulated. Yet its popularity as a means to invest some cash seems on the rise. Whether encouraged by 2015’s art sales combining to a reported $37 billion globally, or the stock markets own current instabilities dissuading people from more traditional investments, the art business’ appeal to both firms and individuals is not on the wane.

So some insight from a few art insiders:

‘Art and the market in general is largely driven by psychology. It’s supply and demand economics but what makes people spend, the impetus to acquire, is something which comes from a sense of well being.’ Ian Peck, founder of bespoke art financing firm Art Capital Group. In other words, although the art market works in essence like any other market, there is an inherent worth in a piece of art that goes beyond the cut & dry business of buy and sell.

‘If you do buy art, buy what everyone else is buying. It is an entirely false market and one day it will implode, but at the moment it is fiercely profitable.’ Brian Sewell, art critic. While this may not inspire hope in any aspiring art dealer, it is profitable to do your homework. The trends arise with good reason and a keen awareness of the current climate of the industry, and where money is driving interest, is a good place to start.

‘Artists need a lot of collectors, all kinds of collectors, buying their art.’ Charles Saatchi, renowned art collector and dealer. While it is crucial to follow market trends, investing in art from either a business or an individual standpoint is an opportunity to explore your own interests. Firms like Art Capital Group define their success by their recognition that an investment in art can provide both monetary and emotional value. If collectors execute investment strategies with a keen eye and a driving force to fulfill aesthetic objectives as well as financial ones, they will see success.