Art has traditionally been viewed as an exclusive investment, but affordable options do exist. Despite the perception of elitism in the art market, efforts are underway to make art more accessible. While many attend art fairs and galleries, actual buyers remain few, largely due to confusion regarding prices and investment potential. Experts emphasize that art should be appreciated for the joy it brings rather than solely as a financial asset, with advice suggesting new collectors start with less expensive pieces. The emergence of social media has further democratized the art world, allowing artists to connect directly with audiences.
Art has traditionally been viewed as one of the most exclusive forms of investment. However, it is possible to purchase artworks with a modest budget. Is this even a worthwhile investment?
The art market is often seen as elitist and inaccessible. For those unfamiliar with the field or operating on a limited budget, the idea of art as an investment can seem implausible. However, there are ongoing efforts to democratize this market.
While increasing numbers of people are visiting art fairs and galleries, the actual number of buyers remains relatively low, according to art economist and author Magnus Resch. He explains this gap by noting that many fundamental questions remain unanswered. With the plethora of options available, art enthusiasts often find it challenging to decide what to buy. Moreover, uncertainties surrounding price and potential value appreciation deter many from making a purchase.
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Price as a Barrier
Price often serves as the largest obstacle, adds Oliver Lähndorf, cultural manager and director of the ‘Affordable Art Fair’. The fair aims to make art accessible to everyone.
Lähndorf explains that this is particularly effective due to a price cap: all artworks offered cost less than €10,000, with some priced under €500. Transparent pricing makes it easier for novices to navigate the art market.
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Art as an Investment?
But is art a worthwhile asset? Magnus Resch expresses skepticism, stating, “99 percent of artworks available today do not make good investments.” Those who anticipate an increase in their artwork’s value may end up disappointed. However, Resch argues that purchasing art shouldn’t primarily be about financial gain. It’s also an investment in the artists themselves.
Lähndorf encourages buyers to view art as a source of joy rather than merely a financial asset. “Anyone looking to buy art as an investment should do so wisely and gather ample information,” he emphasizes. Even the most talented artists can’t guarantee fixed returns. “If the value of a piece appreciates over time, that’s a pleasant bonus – but not the essence of the buying experience.” Especially in the lower price range, reselling artwork can be quite challenging.
To navigate the art market without prior knowledge, expert Resch advises, “Look at as much art as possible.” Regular visits to galleries, museums, and exhibitions can help art enthusiasts identify their personal preferences. He recommends keeping the first purchase affordable: “Aim to buy your first artwork for under €1,000.”
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What Characterizes Good Artworks
Resch’s six-year study of over half a million artists has revealed that financial success is not solely determined by the art itself. The selection of galleries and patrons plays a crucial role.
“The success of an artist relies more on the network they are part of than on their actual work,” he underscores. What is considered good art in museums and collections often results from external influences. However, digital advancements have opened up new avenues for networking.
A Chance for Change
Social media has fundamentally altered both the network and the overall art market. Artists can now more easily connect with each other and have direct access to their audience. This ability to self-promote grants them independence from traditional galleries, which no longer solely dictate what potential buyers should consider.
Entering the art world is becoming increasingly feasible, even without substantial wealth or specialized knowledge, as the market continues to democratize. Nevertheless, viewing art as an investment remains particularly risky in the lower price bracket.