The art market has in the last five years increased year on year. Although it does not come without its risks, investors in the art world may have recently been spurred on by the renowned successes of several famous sells. Gauguin’s ‘When Will You Marry’, a Post-Impressionist oil painting by the French artist, sold for almost $300 million last year. Contemporary art however is in general experiencing a particularly exciting boom, so much so that market commentators do not see the interest in contemporary art as being able to reach greater heights. Individual investors in particular are contributing to a rise in art sales, and Art Capital Group reports that art comprises of 10-20% of assets for the typical ultra-high net worth client.
Art has its appeal for being a meaningful asset, whether for personal enjoyment or for greater investment. Speculators attribute the growing demand of individual art collectors as evidence of a growing cultural focus on the luxury goods, driven in part by the ‘celebrity’ status of attained wealth. Frieze, the annual contemporary art fair in New York, this year announced a partnership with Hollywood agency WME-IMG. This move highlights a push to attract greater audiences, and has been reflected worldwide in similar enterprises.
In the current financial climate worldwide it is also seen as a stake in investing something that is highly mobile and not currency dependent. Art Capital Group cite their success as reflective of the growing demand for art finance which banks are simply unable to meet. In offering a flexible and customized creative service they are opening up opportunities for the collector which they would not be exposed to by traditional lender means.
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