Is it really profitable to invest in art? Demystifying false promises
In recent years, several online platforms have emerged that invite a wider audience to invest in art, presenting it as an opportunity for almost assured revaluation. This type of investment is presented as an accessible and profitable option, even for those who do not have great knowledge about the art market.
However, the reality is more complex. Studies by economists specializing in the art market, such as Clare McAndrew, and experts such as María Sánchez-Arroyo, author of the book "Investment or Passion?", point out that many of these promises simplify a much more exclusive and demanding market.
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The danger of the democratization of art
In principle, the democratization of the art market sounds like a positive thing: to make more people able to access the world of collecting. However, this concept has brought significant risks for both investors and artists and the market itself.
Unrealistic Expectations: Platforms that “democratize” art often present investment in art as a risk-free opportunity, where anyone can generate substantial profits without prior knowledge. This generates false expectations and disappointment when the works are not revalued as expected.
Market saturation: Promoting mass access to emerging artists without proper curation has led to saturation of the primary market. This hinders the differentiation of works with real potential for revaluation and, consequently, harms both collectors and artists.
Less focus on artistic quality: In some cases, the financial aspect is prioritized over the artistic value, relegating the quality and cultural relevance of the works to the background. This can affect the perception of art as a cultural asset and not just as a commercial product.
Lack of infrastructure in the secondary market: Democratization does not usually address the problem of liquidity. Many investors who buy works through these platforms find that they don’t have the backing to resell them, exacerbating the perception of art as a safe investment.
Art as an asset: more than a financial investment
Unlike other assets such as stocks or real estate, the value of art is not governed by a simple supply and demand equation. Factors such as the prestige of the artist, cultural trends and the uniqueness of the work have a significant impact on its valuation.
One of the least mentioned aspects is the lack of liquidity of the art market, especially in the case of emerging contemporary artists. Selling a work of art is not an immediate thing, and without good advice, it can be a difficult task. Although some investors achieve high returns, most works are not significantly revalued in the short term.
To understand how to better value an investment in art, you can consult Artnet’s guide, which offers tools to analyze price trends and sales history of important works.
Analysis of art vs other investments
The problem of liquidity and access to the art market
The main problem is that many platforms and financial advisors lack access to top-tier artists. Instead, they typically offer works by emerging artists who, while promising, do not always have a real demand in the secondary market.
This happens because these artists continue to produce new works in the primary market, which makes it difficult to materialize the investment. In addition, sometimes a work acquired in a gallery can lose value when trying to resell it at auction, especially if the artist has not managed to consolidate his reputation.
Related: Learn more about the contemporary art market and how to identify opportunities.
To learn about recent auctions and their impact on the secondary market, visit Sotheby’s platform.
The value of knowledge in art investment
Beyond financial expectations, what really sets an investment in successful art apart is knowledge. Large collectors and auction houses buy art not only for its financial potential, but also for its history, quality and provenance.
Art requires a curatorial approach: it is not enough to follow fashions or trends, but it is essential to understand the context of the artist, his evolution and how he fits into the market in the long term.
🔎 Recommended reading: Learn about the latest Art Basel & UBS report on the art market.
Avoid false promises in investing in art
When the art market is said to be thin, it means that selling a work can be difficult and time-consuming. This is one of the risks that is not always mentioned.
Many platforms try to sell art with unrealistic promises of rapid revaluation, but lack the necessary infrastructure and contacts in the secondary market. This creates unrealistic expectations for investors, who may find it difficult to resell their pieces.
📌 Related: Do you want to know more about how to buy art with discretion? Read our guide to art collecting.
Conclusion: Investing in art with judgment and long-term vision
The art market is fascinating, but also complex. It is not a way to get quick money, and those who come up with this idea may end up frustrated.
The key to a successful investment is information and expert accompaniment. Acquiring a work of art requires time and analysis, but, above all, it must represent a cultural and personal value for the collector.
5 keys to investing in art successfully:
Learn more about the market before you buy.
Consult experts who can advise you on the selection of pieces.
Analyze the artist’s history and future projection.
Consider the liquidity of the work before acquiring it.
DO NOT BUY ONLY BY INVESTMENT; art must have personal and cultural value.
Do you need investment advice and art collecting?
If you have doubts about how to start or want to make sure that your investment in art has a solid backing, Mariana, Rocío and Raúl will be happy to advise you. In our experience, each collection is unique, and finding the right pieces is a process that deserves attention and knowledge.
The Galerists of Marquesa Gallery, Mariana, Rocío and Raul (left to right) in the new exhibition.
[author _ raul]