What is art? Well, that's a hot topic of conversation. It's challenging to convince people to agree on a unique definition of art because art is more than paintings or sculptures. People usually see art as a reflection of individual human creativity and imagination, and its value is appreciated over time for various reasons.
The art world has always been surrounded by a halo of controversy, which could only serve artwork value appreciation in time. People have been interested in collecting interesting and unique pieces since the earliest times, and there's no sign they will stop soon. With so many options for art, every collector can find something to meet their interest. And while some collect art solely for aesthetic purposes, others approach collecting art from an investing point of view. Their investment portfolios could include only art or art together with other assets that are expected to appreciate in value in the long run.
However, understanding what type of art could increase in value is challenging, even for a seasoned collector. If you just joined this trend, then you might be overwhelmed with the multitude of pieces you could add to your portfolio, and it's best to gain some knowledge so you can tell which ones of them have the greatest chances to grow in price.
Why Do Collectors Find Art A Great Investment?
Art has earned the reputation of being an investment that increases in value, which means it can make a sound return over time. Many investors choose to diversify their portfolios with art because it acts as a hedge against inflation, and the changes in the stock market have no impact on their value.
Inflation periods are characterized by price increases for services and goods and are usually associated with times when there is more money in circulation than previously. Inflation could affect art only if the supply prevents its ability to gain value. However, as with most commodities when the demand for a piece rises, so does the value.
Factors That Could Trigger An Increase In The Value Of Art
The Artist's Reputation
Unsurprisingly, the artist's reputation significantly influences its appreciation over time. If a photographer artist gains recognition, for example, their photography for sale will become more sought after, driving a spike in value.
Additionally, when the artist wins a prize, secures a gallery representation with a reputable organization, or becomes a member of an art society, their pieces gain value. In contemporary times, also getting mentioned on social media, in the press, or on television can impact the value of their artwork. Any change in their status will affect the value of their creations in the long and short term. However, it's worth mentioning that often, a change in status will allow the artist to charge a higher price for a short period unless they continue to increase their reputation and sustain the value of their artwork over time.
Scarcity
As with most assets, scarcity determines a higher price, so artworks increase in value if rare. An artist's works of art can get lost, hidden, or damaged as the years pass, and the scarcer they become, the more the public will be interested in purchasing them. The scarcity of pieces always drives their value up, and art enthusiasts are willing to pay more to own a unique piece.
Demand In The Art Market
The art market's trends and conditions will also play an important role in appreciating art pieces. When the demand for particular styles and artists surges, the prices for relevant pieces will also increase. Art collectors are in touch with the changes in the art market, so they can predict what artists and pieces will appreciate over time.
Public Exposure
It's essential for people to gain interest in an artist's works to see them displayed. Therefore, when an artist displays their works in an exhibition, museum, or publication, they enhance their exposure to the public and spike interest. Having their works displayed in prestigious galleries will gain them increased recognition and credibility and enable them to reach collectors.
Art Style
Some art movements and styles have gained notoriety over time, and collectors have maintained their interest in the pieces in the long run. The artistic movements that continue to impact present art will always be popular among collectors, so most pieces from surrealism, cubism, or impressionism will be appreciated in time because they impact contemporary pieces and stay relevant in the market.
Art Styles Likely To Increase In Value
Abstract art – who would have thought that abstract art would capture the public's attention for such a long time? Its popularity shows no signs of slowing down, so pieces created in this style could increase in value in the long run. Artists like Takashi Murakami and Jeff Koons have brought abstract expressionism back to life, and the public has started to look for pieces that could make worthy additions to their investment portfolio. This style has been popular in the past, but people have started to attribute it to more depth recently, which could only positively impact its value.
Pop art—what once was a whimsical trend has not reached mainstream. Roy Lichtenstein and Andy Warhol played a significant role in transforming these colorful pieces into valuable artwork. Pop art isn't everyone's cup of tea, so it has established itself as a niche that takes inspiration from everyday commercials, comic books, and other sources that rely on heavy coloring.
Classical art – if the above styles might have surprised some, classical and old art has always captivated the public's attention, so it's only natural for it to increase in value over time. When an old piece is displayed during an auction, it will usually be sold at the greatest price, proving that this style won't ever go out of style. However, the thing with these pieces is that most of them reside in museums and galleries for the public to admire them.