When Philip Hoffman began The Fine Art Group in 2001, the first asset-based art investment fund, many people questioned his sanity. Numerous collectors considered artwork more of a cultural rather than a business-related asset.
More than two decades later, attitudes have changed. Now, individuals often ask Hoffman questions such as who are the best artists to purchase and how long should you hold onto a specific work?
It is important for you to realize that artwork becomes a business investment if you devote a solid percentage of your wealth on said undertaking.
Hoffman attributes The Fine Art Group’s success to understanding art, the art market, and the proper methods of turning such assets into profitable investments.
Art’s Appeal as an Asset
The art market has always garnered attention for both collectors and investors, but the current landscape offers significant opportunities. This is especially true if you work alongside well-informed advisors.
Throughout time, market adjustments precede periods of notable and sometimes previously unseen growth in the industry. However, unlike past downturns, the market is not terribly volatile. It is, however, difficult to navigate, particularly in the wake of post-Covid auction highs.
Observers expect such circumstances to align with those witnessed in galleries and private sales creating a greater market balance.
Recent gathered data supports this belief. In May, the New York Marquee’s evening sales equalled $937.3 million. Though this is down a bit from previous years, it is still calculated to be a sell-through rate of 94 percent.
Increased sell-through rates often prove indicative of an in-demand market made up of high-quality works.
According to CNBC, private sales are on the increase in comparison to auction sales. Economists suggest that this is because private transactions are less influenced by the current economic situation and factors like stock market volatility.
The Fine Art Group joins you with galleries and promotes transactions between the two parties.
Moreover, the company recently expanded its art-secured lending program rendering the process of investing in artwork more manageable.
Ways of Investing in Art Today
You may choose from several viable options.
One specific method involves group investing where you and other art enthusiasts pool your funds. Funds are then managed by experienced art market experts.
Another alternative centers on building your own individual art portfolio. Typically, fine works can be purchased at renowned fairs like Art Basel, which showcases pieces from the world’s top galleries.
At this year’s Basel event were noted offerings from famous artists like Pablo Picasso, as well as emerging talents including Lenz Geerk.
Locations extending an eclectic mix of classic and modern works attract respected collectors and serve as opportunities you cannot overlook.
You might also consider purchasing from other collectors. Such transactions are often brokered by third-party advisors and allow you to obtain great work that may not be thought of as primary or secondary market offerings.
Advisory establishments like The Fine Art Group often play a critical role in fostering these trades.
Is Now A Good Time For Art Buyers?
Hoffman suggests that current conditions favor buyers. Moreover, you are urged to seek counsel from entities like The Fine Art Group, which understands the art market’s intricacies on regional and international scales increasing your chances of leveraging art purchases into current and future investments.
