In 1958, Francis Cook sold a painting by Giovanni Boltraffio for $53. It featured Jesus Christ, dressed in Renaissance garb and making the sign of the cross. Most collectors and art scholars at the time believed it was a copy of one of Boltraffio’s mentor’s works.
But in 2005, it was given a closer look and the truth came out. It wasn’t Boltraffio’s work at all. It had been painted by his teacher, Leonoardo da Vinci. Suddenly, Salvator Mundi was one of a handful of original da Vinci works. And when it was sold in 2013, it went for just over $75 million.
From $53 to $75 million in a little more than 55 years. That’s the kind of ROI that every investor dreams about.
And while most art investors will never achieve that kind of return, investing in original artwork isn’t all about astronomical values. Art can offer investors at almost every level benefits that are well worth considering.
Investing in Artwork Offers Residual Value
Unlike intangible assets such as intellectual property or brand recognition, artwork can be assessed, valued, and sold quickly and easily. In this way, artwork is more similar to traditional investments, though it isn’t quite as liquid as cash or stock.
If you’ve been searching for an investment that offers a residual value that can be converted to cash within a reasonable amount of time, you should consider looking at artwork. Depending on the artist, initial investments can begin at $1,000 and go up into the millions.
Investing in Artwork Offers Potential for Growth
Artwork is an investment that rarely goes down. While values may not dramatically spike, they generally offer consistent, reliable growth. Not only does the value of art grow over the course of an artist’s life, it normally rises even more considerably after the artist has passed.
In other words, there’s a tremendous potential for growth with artwork. And since thousands of new artists enter the art scene every year, there are countless opportunities to invest in quality artwork that’s likely to rise in value over the years.
Investing in Artwork is a Wise Diversification Strategy
If you’ve got all your eggs in a single basket, all it takes is one accident to leave you with nothing but a mess. That’s why diversification is so important for any holistic long-term investment strategy. And artwork can be a great addition to just such a strategy.
The art industry has grown tremendously over the past twenty years and shows no signs of steep decline. And while most artwork won’t offer you massive returns, it will give you the kind of stability that’s missing from more volatile investments.
Investing in Artwork Offers a Hedge Against Inflation
As we’ve already noted, artwork rarely goes down in value. And most works of art appreciate at a higher rate than inflation. This makes it a great option if you want to diversify your portfolio with an asset that isn’t subject to the whims of ‘the market.’
Investing in Artwork is Pleasurable
We’ve already seen how investing in artwork can offer several different financial benefits. But there’s one thing that art can do that other investments can’t: It looks great hanging on your wall.
Research has shown that beautiful artwork improves the health and well-being of people who are regularly around it. In addition, it promotes peace and can transform a living space from chaotic to calming.
That’s not something anyone can say about a stock certificate.
Beautiful artwork doesn’t just make for a good investment. It makes for a good life. So, if you’ve been thinking about how to approach your next investment, why not consider making it a work of art?