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A Guide in How to Invest in the Art Market Sensibly

Investing in the Art Market can be lucrative but like with all investments, there is risk involved.  This guide in how to invest in the Art Market is to help you make informed choices.

As small investors, we are probably not in the league of buying a Picasso or Monet.  However, there are still good investments to be made with lesser known and up and coming artists.  The secret is picking the right ones.

What should I Invest in?

I think to begin with we need to have an idea of what is selling and which markets are the most active at this time.  One of the ways to do this is to look at the main auction houses to give us a clue.  A recent study of paintings sold at Christie’s and Sotheby’s discovered that Impressionist and modern art accounted for about 30% of total sales.  25% was represented by 19th century paintings.  Post-War and Contemporary was 16% and lagging behind at 5% were Old Masters.

Henri Hayden ~ Browse & Darby
Henri Hayden ~ Browse & Darby

If we compare the results from the auction houses with the Mei Moses Art indexes ( widely recognized as the pre-eminent measure of the state of the art market) we will get an idea of what will give us the best return.  Researching the Mei Moses index we find that the Post-War Contemporary Index out performs the World Impressionist Modern Index by some margin.  This is especially true over the last 10 years.  Another index, The Art 100 indices also backs up these findings.

This gives us an idea of where the market is at this time.  However, we must remember that things can change.  What is popular now can very quickly become out of favour.  Therefore it is important to keep an eye on trends.

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