Investing in Art: Dowry or Hidden Treasure?

Yesterday, I attended a wonderful event organized in collaboration with #shewealth.

They offer financial literacy education specifically for women. As part of their initiative, they host events that focus on various capitalization strategies. Their primary audience is women, and they teach them to set aside savings in any form to ensure confidence in their future.

This event highlighted the fact that art pieces can also hold special value. Whether a woman can make a profit from them is uncertain, but there’s a possibility. Art is like a dowry—either used or stored, and later it may turn out to hold significant value.

Here are a few tips on how to choose a painting that could potentially increase in value.

I won’t mention the obvious popular artists like Monet, Van Gogh, and others. It’s clear that their works are already expensive and tend to rise in price over time.

But how is the value of a painting determined? What criteria should you use when selecting pieces at auctions (like Koller Auktionen AG ) or galleries?

?? When the artist creates something using a new method, and this method later becomes a new trend. Essentially, they become trendsetters in art. Another scenario is when certain works stand out within a popular style (for example, Cubism). But how can we identify which works will stand out? In the end, fashion dictates what will be valuable. You either follow art trends or trust specialists (for example Waldstein Art Consulting or alberto-art-advisory.com).

?? An artist who has produced very few paintings.

I could end up in this category myself. It takes me 2-3 years to finish just one painting ??

When an artist has only created a few works, and those works are polished to perfection and have a unique touch, there’s some chance they’ll become valuable.

?? Paintings previously owned by a renowned art patron or celebrity can become more desirable.

This almost seems like a marketing trick—place a painting with a celebrity to boost its value, then split the proceeds from its sale with that celebrity. Voila!

?? Paintings that capture key moments in art history or represent shifts in style or technique are often highly valued. Like historical documentation, showing real events can increase its worth.

?? Well-preserved paintings, even from past centuries, are highly valued. Restored arts are generally worth less. So, if you purchase a painting, protect it from light, humidity, and other environmental factors to help it appreciate.

My own Hypothetical Strategy

do not claim to be the truth, since I am far from being an art consultant. Take these simply as thoughts, not recommendations for action.

Here’s what I’d do: I’d look for paintings from professional hobbyist artists ??—those who don’t rely on their art for income. Ideally, this would be someone who works in business (or a corporation), paints in their free time, reflects current events in their work, and creates in a trendy style. I personally enjoy mixed styles, so I’d look for Abstract Expressionism 2.0, combined with Sustainable and Eco-Art, Neo-Surrealism, or Hyperrealism, Socially Engaged Art, Street Art

?? As a true venture investor, I’d prefer to pick a promising artist while they’re still “young.” I’d aim to buy works directly from the artist rather than opting for art that has already gone through several auctions. I’d only consider auctions if I intended to sell.

?? Additionally, I’d actively promote my selections through galleries and celebrity homes. It’s essential for valuable artwork to be shared with the public rather than just hung in a bedroom. To appreciate in value, a piece needs visibility and ideally some publicity.

?? Another nod to modern trends: I would definitely create NFT copies of the physical paintings and list them on platforms like OpenSea.ai . And it’s hard to say which would appreciate faster—the physical or the digital version ??        

Lastly, it’s likely that the art I buy wouldn’t be sold during my lifetime but would be passed down as a family heirloom to my children and grandchildren. For some reason, I like to view this kind of capital as family wealth rather than something to be cashed out. Interestingly, the speakers echoed this sentiment as well…

I’m incredibly grateful to Marion Fogli and Deborrah Schaer for the beautiful location at Blue Velvet Projects , and for giving us the opportunity to reflect on this fascinating form of investment.

I’d love to hear your thoughts in the comments— what do you think about my art investment strategy? ??