Art may be a more appealing option if you are reluctant to invest in other traditional assets. Here, we will cover the best art investments in 2022.
With so much uncertainty regarding the state of our economy, you might be on the look for various ways to diversify your portfolio. If you are reluctant to invest in other traditional forms of assets like stocks or bonds due to the volatility of the markets, turning to an alternative asset class like art may be a more appealing option for you.
For so long, there's been a misconception that art is only for the wealthy elite. But with the recent rise of digital art, the increasing number of art galleries, and new platforms that make buying and selling more accessible than ever, that is no longer the case.
However, before you dive headfirst into the art world and know the best investments for this year, we bet you want to know some benefits of investing in art.
The Benefits of Investing in Art in 2022
1. It's a More Stable Investment Than Other Assets
Art has always been considered a more stable investment than other assets such as stocks or bonds. The art market is less influenced by economic trends and is, therefore, less volatile. This means your investment is less likely to lose value in a recession or bear market.
2. It's a Tangible Asset
Unlike stocks or bonds, art is a tangible asset you can physically touch and enjoy. This can make it a more enjoyable investment, as you get to experience the art firsthand rather than simply looking at numbers on a screen. You can also hang it on your wall to personalise your home or office space, which may be more satisfying than having your money locked away in an investment account.
3. It's a Hedge Against Inflation
Art has been shown to be a hedge against inflation, meaning that it tends to increase in value as the cost of living goes up. This makes it an excellent long-term investment, as your art collection will likely be worth more in the future than it is today.
4. You Can Choose From a Wide Range of Art Types
With so many different artists and styles of art available, you can easily find an investment that suits your taste. Whether you prefer paintings, sculptures, or digital art, there's an investment for you.
5. It's a Great Way to Diversify Your Investment Portfolio
Buying art is a great way to diversify your investment portfolio and reduce your overall risk. Investing in other asset classes like stocks, bonds, and real estate can spread your risk and potentially increase your returns.
With all these benefits in mind, you might wonder what the best art investments are for 2022. Here are our top five picks:
The Best Art Investment in 2022
1. Street Art
Street art is becoming increasingly popular, with more and more people collecting it. This type of art is often created by anonymous artists and can be found on buildings, sidewalks, and other public spaces. One of the most famous street artists is Banksy, whose art often sells for mouth-watering prices. You can find some of Banksy's artwork by visiting an art gallery like Florence Bell.
2. Contemporary painting
Contemporary art is a broad category that includes all art created from the 1970s to the present day. This type of art is often characterised by its diverse and experimental nature, as artists push the boundaries of what is possible. Jean-Michel Basquiat is one of the well-known contemporary artists with iconic paintings like Versus Medici.
3. Sculptures
Sculptures are another popular type of art investment. Many people enjoy the three-dimensional aspect of sculptures and how they can be displayed in homes and offices. Barry Flanagan and Jeff Koons are two famous sculptors to look out for.
4. Rare & limited art prints
Limited-edition prints are a great way to invest in art without breaking the bank. They are often signed, numbered and stamped by the artist, making them incredibly collectable. One of the main advantages of prints is that they are more accessible than other art forms and can be bought at a fraction of the cost.
5. NFTs
NFTs (non-fungible tokens) have been the talk of the art world lately, and for a good reason. These digital assets are stored on the blockchain and can be bought, sold, or traded like any other asset. If you aren't into physical art, digital art is a great alternative. However, you should note that NFTs are merely a way to use technology to indicate ownership, so investing in an artwork just because it is tokenised does not guarantee its value will go up.
The Bottom Line
Art can be a great investment, whether you're looking to diversify your portfolio or simply enjoy the art itself. With so many different types of art available, there's sure to be an investment for everyone.
Visiting an art gallery like Florence Bell can be a great way to find artworks you love. Our team of experts can help you find the perfect piece for your collection. Contact us today to learn more.
