So, is art resistant to inflation? Is art inflation-proof?
This is a question a few of my clients have asked lately. The quick answer is Yes. In times of high inflation and high market volatility, like now, turning to art is a wise decision.
For the most part, contemporary art is shielded from inflation, as most galleries take a long view on their artists’ career and their pricing structures closely follow each individual artist’s trajectory, and not the economy. This applies to art collectors who mostly buy art on the primary market (as in directly from galleries or artists).
In times of rampant inflation, it is reassuring for art collectors to know that the price of art is not correlated to the inflation rate.
Historically, buying art has also proven to be a smart investment. From 2000 to 2018, the Artprice 100 index, tracking the top 100 artists in the market, delivered an annual growth of 8.9%, while the S&P 500 averaged 3.4%. In 2021, the Artprice 100 index showed an increase in value of 36% to 27% for the S&P 500 over that same year. While this index draws its data from auction results and is not a true reflection of the overall art market, it is nevertheless telling of the strength of the contemporary art market.
Art is now widely considered a smart investment that not only offers great personal satisfaction and a good return on investment over time but also holds its value in times of economic downturn.
Now is a good time to buy art. Contact me for advice on buying contemporary art and collecting wisely, and sign up for my quarterly newsletter for the latest art happenings and insights. #contemporaryart #art #artadvisor #buyart #investinart #collectart #artcollector #trends2022 #artmarket #inflation #artforyourhome #artcollecting