5 Reasons Why Our Clients Invest In Art

Art holds immense value in various forms, whether through paintings, sketches, or digital creations. It not only enhances spaces, conveys stories, and influences emotions but also serves as a promising financial asset.

For both emerging artists and seasoned collectors, investing in art provides an opportunity to connect with the creative world while potentially earning substantial returns. Additionally, collecting artwork contributes directly to the livelihood of artists globally. As a result, an increasing number of people are considering art as a viable investment option.

The advantages of collecting art are numerous, including the potential for financial growth. But is art a worthwhile investment? More importantly, what makes it an appealing choice? Here are five compelling reasons to consider adding art to your portfolio.

1. A Passion for Art

The most significant motivation for investing in art is a genuine appreciation for it. Art collectors tend to acquire pieces that resonate with them, selecting works by artists they admire or that evoke strong emotions.

If you have a deep love for art, it makes perfect sense to invest in it. Having an understanding of artistic styles and trends can offer an advantage when selecting valuable pieces. Choose artworks that you’d be proud to display in your home or workspace—pieces that bring inspiration and joy.

Over time, these works may increase in value, providing an opportunity for profit. Additionally, a keen interest in specific artists or artistic movements can help you navigate art fairs, auctions, and exhibitions with confidence. Unlike traditional investments such as stocks, art is something you can enjoy while it potentially appreciates in value.

2. Art as a Reliable Asset

One of the main reasons to invest in art is its reputation as a dependable asset. The art market has consistently demonstrated resilience in times of financial uncertainty. While other markets experience fluctuations, demand for art remains strong.

During periods of economic instability, such as the COVID-19 pandemic, many industries suffered severe losses. However, the art sector continued to thrive. In terms of reliability, art investments share similarities with gold.

Regardless of economic conditions or interest rate changes, investing in art can help preserve wealth while offering opportunities for profit in both the short and long term.

3. Art Outperforms the Stock Market

Art has consistently shown impressive growth as an asset class. Unlike stocks and shares, which are prone to unpredictable swings, the art market remains relatively steady.

Art is less affected by inflation and currency fluctuations, making it a strong hedge against financial instability. Between 1995 and 2020, contemporary art investments recorded fewer losses than the stock market, with only a 4% decline over three-year investment periods. This makes art a reliable alternative to traditional financial investments.

4. A Tangible Investment

Unlike intangible assets like stocks and bonds, art is a physical possession—you can see it, touch it, and appreciate it every day. Art fosters emotional connections, making it a more personally fulfilling investment.

Moreover, artwork can be passed down through generations, retaining its value over time. Unlike investments such as wine, which lose value once consumed, art maintains its worth indefinitely.

Even if a particular piece does not experience significant financial appreciation, its aesthetic and sentimental value ensure a worthwhile investment.

5. Expert Guidance from Her Fine Art

Navigating the art world can be challenging, but Her Fine Art is here to assist you. Our specialised advisory service helps collectors make informed decisions. Our experts offer guidance on selecting pieces that align with your preferences and financial goals.

With an average annual return of 8% to 12% on art investments, we enhance the potential for successful transactions in the secondary market. Whether buying or selling artwork, our advisors provide personalised support to help you maximise your investment.

The Her Fine Art team has extensive experience working with collectors worldwide. To explore the potential of art investment, check out our comprehensive guide. Contact us at 0203 766 3533 to begin your journey into the world of art collecting today.