5 Reasons Why Collecting Art Is Worth It

What are the fundamental aspects of art collecting? How can you get started, even with a low budget?

11 August, 2023

Art has historically been associated with prestige, wealth and status. Although it has the power to fascinate a wide variety of people, it is often seen as something to enjoy, by visiting fairs, museums and exhibitions, but not to own, leading to the general belief that art ownership is only for the few.

Instead, based on our 'share your passion' motto, we strongly believe that access to art should be as democratic as possible and that everyone should be able, if willing, to start their own art collection, even without a huge budget.

In this article, we will deepen some fundamental aspects of art collecting, highlighting the reasons why starting your own collection is worth it and outlining how you can start one even on a low budget.

Art pays off

Art is a passion asset: the emotions and attraction felt toward specific pieces of art play a primary role in determining art purchases. However, purchases are not always driven exclusively by the love for art, as, from an investment perspective, art can also be seen as a smart way to diversify the investment portfolio. In fact, art is defined as a 'safe-haven asset' for its capacity to retain value in the long term. Also, it has consistently demonstrated that it performs very well in the context of economic and financial turmoil, such as the 2001 financial crisis or the 2008 economic downturn, or in times of unexpected crises, such as the Covid-19 pandemic and the inflation peak we have experienced over the last few months. However, being an investment category, it is important to highlight that the return on investment is not guaranteed, nor is it guaranteed that all pieces of art are able to retain their purchasing value in the long term.

The artists whose works have the highest value on the market and are more likely to hold it over time are defined as 'Blue-Chip'. In this category, we find acclaimed artists, such as Pablo Picasso, Andy Warhol and Alighiero Boetti, whose works are mainly sold at auction at a very high price. Compared to other categories of artists, the Blue-Chip ones are seen as low-risk, as it is quite unlikely that they will lose their value. In fact, as recent auction results have shown, many of these artworks have outperformed their estimates in times of crisis. For example, in May 2022, Andy Warhol’s 1964 silk-screen 'Shot Sage Blue Marilyn' was sold for about $195 million at Christie’s in New York, making it the highest price achieved for any American work of art at auction, while Alighiero Boetti established his new record in November 2022 during Christie’s New York auction (£6,221,846).

Obviously, collecting Blue-Chip artists is not for everyone, as it requires a considerable budget. Thus, it is important to highlight that it is possible to adopt an investment perspective even when collecting emerging artists. In this case, the return can be high, but equally high is the level of risk involved. Recent auction results demonstrated the extraordinary growth in prices of some emerging artists. An example is Anna Weyant, who sold her first painting for $400 in 2019 and whose work now fetches more than $1 million at auction, with prices expected to rise even further. Her record work, 'Falling Womam', sold for $15,000 in 2021, achieved the record price of $1.6 million at auction a year later. Also, in this case, it is important to underline that these are exceptions in the art market, representing situations that can damage the long-term growth of the artist. However, it is possible to find talented emerging artists on the market, who are likely to grow in a more reasonable way in the medium term, providing collectors with the opportunity to have both an aesthetic and economic return for having believed in them.

Art makes you feel better

Undeniably, art is a powerful tool to make your home environment more welcoming and cosy, adding personality to your own place. Moreover, art can be a great conversation starter, offering you the possibility to entertain guests with stories and anecdotes around the artist or artwork itself. Recognised and well-known artists can add more prestige while emerging artists can be even more interesting for their original and uncommon styles and research.

However, art is not only connected to reputation and status. Actually, artwork can play a key role in an individual's well-being. Different studies have demonstrated the strong effect art can have on the human brain, showing how viewing and analysing art stimulates the brain in substantial and long-lasting ways. According to The Telegraph, looking at stunning paintings, sculptures, or other artworks might increase blood flow to the brain by as much as 10%, the equivalent of looking at someone you love. Also, the University of Arizona highlights that when you look at a piece of art, a process known as embodied cognition occurs, through which 'mirror neurons in the brain turn things like action, movement, and energy you see in art into actual emotions you can feel'. In other words, the more you analyse the piece, the more you place yourself within that specific scene. As an example, viewers of a drip painting by Jackson Pollock can often feel like they are the ones flinging the paint onto the canvas or, in the case of pieces depicting a desert landscape, viewers might feel the effects of the hot sun, the sand beneath their feet and the sound of a soft breeze. According to this research, by feeling embodied cognition, viewers are able to appreciate the artwork even more.

The connection between art and well-being is now extensively recognised in art and physiological systems. A primary institution, such as Tate Modern, for example, has recently teamed up with psychotherapists to provide slow-looking experiences at art pieces for visitors, sharing tips and techniques to use when delving into art, connecting it to their well-being. Also, Tate Modern developed a quiz aiming at making people reflect on their current well-being through art, connecting with artworks that are part of their collection. On a smaller scale, it is something that an art collector can definitely also simulate in their own home environment, testing their own mood through art engagement.

Art tailored to your tastes

Art comes in infinite varieties, forms and shapes. Thus, it can be tailored to everyone’s tastes and needs, resulting in endless possibilities for art buyers.

Most people will usually first consider the medium used by the artist. While painting has historically been the most sought-after category, other forms of art have also recently gained popularity, such as drawings, collages and mixed works on paper, which can be framed and hung on the walls just like traditional paintings, while providing a less conventional representation of art. Also, sculptures are a popular medium, especially if collectors have external spaces to showcase their art purchases. In 2022, the majority of sales by value in the dealer sector in 2022 came from these traditional mediums, such as the above-mentioned paintings, sculptures and works on paper. According to the Art Basel & UBS Art Market report, in both the primary and secondary markets, these three mediums accounted for a combined 82% of sales by value, with paintings once again being the largest by value (57%), while prints, multiples, and photography made up a further 9%. However, in the last few years, market data showed the important growth of an innovative medium: digital art. Although the traditional mediums still dominated, their share of sales declined in 2022, making room for the advance of digital art. Sales of digital, film, and video art accounted for 5% of sales in 2022, up from just 1% in 2021. The majority of those sales (4%) were digital art, and almost all (99%) were associated with an NFT or ‘crypto art’ (Art Basel & UBS Art Market report). Digital art provides collectors with the opportunity to showcase their art in a purely unconventional way, by framing a screen as if it were a painting, projecting it on a house’s walls or even by using ordinary tools, such as TV screens or laptops. Although some collectors are still reluctant to invest in this form of art, technology is developing comfortable solutions to enjoy it just as one would traditional art mediums.

Another central aspect to consider is the kind of artist. As mentioned earlier, the choice can range from recognised, modern Blue-Chip artists, such as Picasso, Magritte or Chagall, to contemporary artists, including acclaimed, mid-career, unknown and emerging artists. The choice depends on a buyer’s tastes, and obviously, on the budget at their disposal. However, it is worth mentioning that pieces by acclaimed Blue-Chip artists are not always unaffordable. In fact, on the market, it is possible to find pieces by Blue-Chips in the form of multiples, prints and silkscreens, which are affordable compared to unique oil-on-canvas pieces. Also, another option is provided by fractional ownership, which allows users to become co-owners of high-value pieces by buying one or more shares of them. This is the business model that London Trade Art specialises in. In the past, we successfully completed the fractional sale of Alighiero Boetti’s piece, while we are currently offering shares of a work by Marc Chagall.

When developing a collection, it would be clever to give it a bold identity, by choosing for example to focus on a specific artist’s geographical provenance or on gender issues. Also, it is worth mentioning that, in order to get something absolutely unique and tailored to the collector, buyers can also decide to commission specific pieces to artists, according to their needs, tastes, and obviously, budget.

Art enlarges your network

The art sector is a fascinating small world. Art lovers and collectors have the opportunity to enjoy an exciting social life by attending art fairs, art events, exhibition previews and other art happenings throughout the world. These are unique occasions to get in touch with valuable art as well as with people who might become part of your own personal and, eventually, professional, network of contacts. Increasingly often, in fact, companies associate themselves with art, organising events in the context of prestigious art fairs, allowing people to combine their passion for the arts and their networking needs. In this context, the most active companies are represented by banks, financial and law firms, and fashion companies.

The art calendar is quite busy during the year and includes major events throughout the world. Amongst the most important ones are ArtGeneve (Geneva, January), ArcoMadrid (Madrid, March), Art Basel (Basel, June), The Armory Show (New York, September), Paris+par Art Basel (Paris, October), Frieze (London, October), Artissima (Turin, November) and Art Basel Miami (Miami, December). In addition to these fundamental trade shows, the art calendar also includes biennals and art manifestations, such as the Venice Biennale (biennial, Venice), Documenta (quinquennial, Kassel) and Manifesta (biennal, nomadic).

Of course, actively participating in so many events requires a lot of time and money at your disposal. Luckily, it is also possible to take part in local art networks without spending money. In each city, it is possible to attend private exhibition viewings for free, arrange artist studio visits, attend the degree shows of emerging artists and participate in talks at art institutions. In cities, such as London, these opportunities are countless. A new exhibitions opens almost every night with a reception open to the public (it is possible to check the calendar using platforms, such as ArtRabbit). There are also recurrent major emerging artist group shows, such as the Central Saint Martin degree show, and talks organised by major institutions, such as National Gallery or the Barbican. Thus, art provides offers you the opportunity to nurture your passion, while enlarging your network and boosting your social life!

Art buying is easy

Until a few years ago, buying a piece of art seemed quite an uncanny process. Many people claim to have felt uncomfortable and in awe of the staff while in a gallery or attending an art fair’s booth. Also, another important barrier was represented by the price opacity that has historically characterised the sector. Prices were not displayed at shows and fairs, and it was very difficult to get them from other channels. The good news is that, in just a few years, things have changed a lot in this context. Due to the technological boom the sector experienced from the spread of Covid-19 onwards, the number of alternatives for art purchases has substantially increased, as has the transparency in physical trade contexts. The relevance of online platforms and the digital alter egos of galleries and fairs has become increasingly significant, providing multiple buying opportunities, and in many cases, more pricing transparency. Nowadays, with just a device, it is possible to buy art pieces ranging from a few hundred to millions of pounds, trade in art fairs, bid in art auctions internationally, directly contact artists through their social media accounts and participate in fractional ownership projects.

However, all that glitter is not gold. Indeed, the Internet offers unique and compelling opportunities, but at the same time, it can be risky, susceptible to fraud and scams that are widespread on the Web. In addition to this, the art world is known for the risks and scams it faces outside the Internet: from fake pieces, inexistent ones, to artworks lacking proper documentation. Unfortunately, the risk that one can lose money and have a bad experience is considerable. Security operators are currently doing their best to overcome these problems and things are improving quite rapidly; however, there are still risks that should not be underestimated. This is why we recommended always paying close attention to buying terms and conditions, checking the documentation in advance and purchasing only from recognised platforms and players, preferring sales channels that provide safety guarantees, through for example the use of blockchain technology. Particularly at the beginning of the art journey, it is very important to rely on the expertise, suggestions, and eventually, the network of contacts of an art advisor or consultant, whose involvement is likely to protect inexperienced buyers from the risks of this fascinating sector.

Want to know more? You can easily access our free e-book, 'The ABCs of Art Collecting: LTArt's Guide to Art Ownership' here.

Need professional advice from our qualified art advisory team? Contact us here.